Digital asset investment products saw substantial inflows totaling $2 billion last week, marking the third consecutive week of investor capital entering the market. This brings the total inflows over the past three weeks to $5.5 billion, reflecting a shift in sentiment. Total assets under management have risen to $156 billion.
Bitcoin proved to be the primary focus of this inflow, attracting $1.8 billion last week. While bullish sentiment dominated, some investors added to bearish positions, totaling $6.4 million, the largest since mid-December 2025.
Following Bitcoin, Ethereum recorded a second week of inflows, reaching $149 million. Competitor Solana saw minor inflows of $6 million. Other assets like XRP and Tezos also registered inflows, at $10.5 million and $8.2 million respectively. Blockchain equities also received capital, with inflows of $15.9 million.
Geographically, the United States led with $1.9 billion in inflows. Germany, Switzerland, and Canada also saw notable capital entering the digital asset market. These regional inflows point to a broad supportive trend for the asset class globally.
Increased investor interest coincides with projections targeting a higher price for BTC. Analysts Gautam Chhugani at AllianceBernstein and Geoff Kendrick at Standard Chartered both estimate Bitcoin could reach $200,000 in 2025. These forecasts suggest an potential increase from current price levels.
The influx of capital is partly attributed to growing institutional acceptance. Hedge fund managers, including Israel Englander of Millennium Management, David Shaw of D.E. Shaw, and Paul Tudor Jones of Tudor Investment, increased holdings in the iShares Bitcoin Trust (IBIT), an exchange-traded fund tracking the spot price of Bitcoin. The SEC approved spot Bitcoin ETFs in January 2024, contributing to faster institutional adoption than other ETF types. SEC filings, such as Forms 13F, indicate a rise in the number of large asset managers holding Bitcoin exposure.
Spot Bitcoin ETFs facilitate investment by reducing the need for distinct cryptocurrency exchange accounts and simplifying transactions compared to platforms like Coinbase. These ETFs allow investors to add Bitcoin to existing brokerage portfolios, often with lower expense ratios than traditional transaction fees.
Bitcoin's performance has outpaced other asset classes over the past year, increasing 240% since May 2023. In comparison, gold rose 45% and the S&P 500 returned 40% over the same period. However, Bitcoin also displayed greater volatility, experiencing price drops exceeding 25% from record highs on multiple occasions.
The recent price environment follows legislative developments. New Hampshire passed a Bitcoin reserve bill earlier this week. The Senate is expected to vote on a stablecoin bill later this week.
Investors view Bitcoin partly as a potential inflation hedge, comparing it to digital gold due to its fixed supply. The asset has a mixed record on this front; its price more than doubled as CPI inflation rose between 2020 and 2022, but it also fell significantly during a period of rising CPI inflation in 2022. The context of trade tensions, such as those under President Donald Trump, which economists suggest can contribute to inflation, plays into discussions about Bitcoin's role as a hedge.
