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Crypto inflows surged to $1.3 billion last week, marking the fifth consecutive week of positive investments.
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Ethereum outpaced Bitcoin with $793 million in inflows, driven by the anticipation of the Pectra upgrade.
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Nasdaq files for new crypto ETFs, including CoinShares’ XRP and Litecoin ETFs, signaling growing institutional interest.
Crypto investments witnessed a remarkable resurgence with $1.3 billion in inflows last week, led by Ethereum’s Pectra upgrade hype.
Crypto Inflows Reached $1.3 Billion Last Week
The latest CoinShares report indicates that crypto inflows reached $1.3 billion last week, marking a positive trend amidst market fluctuations. Specifically, Bitcoin recorded inflows of $407 million, but the standout was Ethereum, which saw substantial inflows of $793 million as investors capitalized on its price dip to $2,500.
Analysts attribute Ethereum’s inflows largely to the excitement surrounding the forthcoming Pectra upgrade, which is anticipated to enhance its scalability and performance.
“Ethereum is still holding its uptrend support since May 2023. Last week, Ethereum ETFs had over $400 million in inflows. ETH big upgrades are coming next month. Trump is still buying and holding ETH. Mark my words; Once Ethereum goes above $4,000, it’ll pump like crazy,” observed a cryptocurrency analyst.
This recent surge in crypto inflows follows a dynamic previous week that reported $527 million in inflows, partially driven by the DeepSeek AI frenzy and geopolitical influences such as Donald Trump’s tariffs affecting international relations. This sustained interest is indicative of how both institutional and retail investors view current price corrections as opportunities to accumulate digital assets.
Crypto Inflows. Source: CoinShares
Despite these positive flows, **market corrections** observed over the last five trading sessions have reduced the Assets Under Management (AUM) of Exchange Traded Products (ETPs) to $163 billion — a decline of around 10% from the all-time high of $181 billion recorded in late January.
Nonetheless, it is noteworthy that global ETPs remain the largest holders of Bitcoin among all entities.
“With ETPs globally now representing 7.1% of the current market capitalization, they have emerged as the largest holder relative to others,” indicated an extract in the CoinShares report.
Trading volumes consistently hovered around $20 billion for the week, reflecting a healthy trading environment despite the fluctuations in pricing. The impact of President Donald Trump’s tariffs has been considerable, leading to significant liquidations in the crypto market—signaling the volatility that often accompanies regulatory news.
More Altcoin ETFs on the Horizon
In a related development, Nasdaq has taken significant steps by filing 19b-4 forms with the US SEC (Securities and Exchange Commission) to list and trade two new ETPs from CoinShares—the CoinShares XRP ETF and the Litecoin ETF. These proposed funds are designed to deliver investor exposure to XRP and Litecoin (LTC), respectively, indicating an increasing interest in altcoin investment products.
Additionally, renowned firms like Grayscale, WisdomTree, Bitwise, and Canary Capital are actively pursuing XRP ETF approvals, reflecting a broader trend toward institutional-grade investment vehicles.
Weekly Inflow in The Crypto Products of Different Asset Managers. Source: CoinShares
Ripple CEO Brad Garlinghouse recently stated that the likelihood of an XRP ETF becoming a reality is high, underlining the growing appetite for structured products that offer regulated access to digital assets.
Similarly, Litecoin is not far behind, as several firms including Canary Capital and Grayscale have submitted applications for their own Litecoin ETFs. This further reinforces the expanding spectrum of crypto investment options available to investors.
This surge in ETF filings aligns with a wider industry trend that sees institutional players looking to secure regulated investment opportunities in alternative digital assets, signaling a maturation of the crypto market.
With speculations surrounding the approval of Litecoin ETFs gaining traction, on-chain analysis reveals a notable increase in LTC holdings among major investors, often referred to as whales, indicating heightened anticipation of potential regulatory nods.
Such accumulation patterns typically serve as precursors to robust demand, both from institutional and retail sectors as they strategize for the next phase of market movements.
Conclusion
In summary, the recent surge in crypto inflows, with Ethereum leading the charge, reflects a significant shift in consumer behavior towards digital assets. With strong institutional interests and new product offerings like ETFs, the landscape for cryptocurrency investments continues to evolve. As developments unfold, investors are encouraged to remain vigilant and informed to leverage opportunities effectively in this dynamic market.
