Investors Turn ‘Positive But Cautious’ as Altcoins See $226M Inflows After 5 Weeks

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• Crypto investment products saw $226M in inflows, ending a 5-week outflow streak, with Bitcoin leading at $195M.
• Altcoin funds saw $33M in net inflows after a month of outflows, with Ethereum, Solana, XRP, and Sui attracting investments.

For the first time in five weeks, global crypto investment products recorded net inflows into altcoin-based funds, signaling cautious optimism among investors. According to CoinShares, digital asset investment products saw $226 million in net inflows last week, with Bitcoin leading at $195 million.

Bitcoin Investment Products Continue to Dominate

Bitcoin-based funds continued to attract the most inflows, reinforcing investor confidence in the asset. CoinShares reported that Bitcoin-focused investment products registered $195 million in net inflows last week. Additionally, investors continued to move out of short Bitcoin positions for the fourth straight week, with $2.5 million in outflows.

According to ETHNews, spot Bitcoin exchange-traded funds (ETFs) in the U.S. contributed significantly, recording $196.4 million in inflows. These products experienced net positive flows daily except Friday, when outflows totaled $74 million. Analysts suggest that concerns over the U.S. Federal Reserve’s monetary policy may have influenced the brief decline.

Despite the strong inflows, the total assets under management (AUM) for Bitcoin-based funds fell to their lowest level since the November U.S. presidential election, now at $114 billion. Bitcoin’s price dropped by 6% last week, reflecting broader market uncertainty.

Altcoin Funds See First Positive Inflows in Over a Month

Altcoin investment products ended their five-week outflow streak, registering $33 million in net inflows. Ethereum, Solana, XRP, and Sui were among the assets that attracted investments. Ethereum-based funds led the way with $14.5 million, while Solana, XRP, and Sui followed with $7.8 million, $4.8 million, and $4 million, respectively.

Before last week, altcoin funds had faced sustained outflows totaling $1.7 billion over four weeks. Analysts suggest that the renewed interest may be linked to improving investor sentiment, though caution remains. The continued volatility in global markets and upcoming trade policies in the U.S. may still affect future inflows.

Despite the inflows into altcoin products, total assets under management in crypto exchange-traded products remain under pressure, dropping 5.7% since March 10. As of March 28, the total AUM stood at $133.9 billion, marking its lowest level this year.

Regional Inflows Led by U.S. Investors

Investors based in the United States made the largest contribution last week, with $204 million. Other regions performed well, namely Switzerland, which contributed $14.7M, and Germany, which contributed $9.2M. Nonetheless, investment products based in Hong Kong and Brazil saw a slight dip in investment outflow.

The increase in whales’ purchases is observed in the context of overall worries about the financial markets. Last week, market participants also responded to a core inflation report from the U.S. economy, which showed that it was above expectations.

Core personal consumption expenditures are an important inflation indicator that raises expectations on whether the Federal funds will likewise sustain its present monetary policies.

Further, geopolitical and economic factors include President Trump’s decision to impose a 25% tariff on Mexican and Canadian goods starting April 2, which has acted as a catalyst for risk aversion amongst investors. Experts believe that it could influence traditional markets, and there might also be influences on digital currencies.