Digital asset investment products spiked institutional profits last week, increasing crypto inflows of $882 million worldwide.
This marked the fourth consecutive week of profit, slightly shy at the $7.3 billion peak observed in early February, pushing annual (YTD) inflows to $6.7 billion.
Cryptocurrency inflow for 4 weeks in a row
The latest Coinshares report shows the fourth week of consecutive positive flows. In the week before, the influx of code reached $2 billion. The previous week, Crypto inflow reached $3.4 billion.
Previously, the inflow into digital asset investment products was $146 million, and XRP was against that trend.
Coinshares researcher James Butterfill says Bitcoin leads fees with a $867 million inflow, reflecting its growing role as a macrohedge amid rising economic uncertainty.
Since the launch of Spot Bitcoin ETFs (Exchange-Traded Funds) in the US in January 2024, cumulative net inflows have reached $62.9 billion, surpassing the previous peak of $61.6 billion. Ethereum has seen a strong price recovery, but investors’ sentiment remains lukewarm with influx last week at just $1.5 million.
Sui, meanwhile, stands out among Altcoins. It recorded an influx of $11.7 million and overtook Solana every week. The total SUI inflow now reaches $84 million, surpassing Solana’s $76 million, the latter seeing a $3.4 million spill over the past week.
Coinshares attributes the sharp rise in crypto prices and investment flows to multiple converging macroeconomic trends.
“We believe that the sharp rise in both prices and inflows will be driven by a combination of factors, including a global rise in M2 money supply, the risk of US bulls, and several US states that recognize Bitcoin as a strategic reserve asset,” writes Batafil.
In fact, states such as Arizona and New Hampshire have made efforts with Bitcoin’s strategic reserves. Despite this, others like Florida have hit a brick wall.
Macro Shift provides trading compass for crypto investors
In the same tone, the growing global M2 money supply is becoming a focus for Bitcoin investors. TradingView data shows that China’s M2 money supply remains an all-time high of $326.13 trillion. This illustrates the potential global liquidity flooding that risky assets like Bitcoin are currently absorbing.
Analysts also observe that Bitcoin prices are positively correlated with global M2 trends. This outlook reinforces the narrative of Bitcoin as a macro-responsive asset.
However, not all experts are convinced. The growing consensus links the expansion of M2 with crypto-price actions, but skeptics argue that the relationship may be exaggerated.
The fear of the US recession is fuelled by crypto allocations. Goldman Sachs recently increased the odds of a 12-month recession in the US to 45%, quietly increasing its exposure to Bitcoin through funds that include Spot ETF products.
Investors interpret this as a signal consistent with Crypto’s broader theme as a hedge that hinders traditional fiscal (Tradfi) equipment and dollar-induced assets.
This recognition has acquired institutional validation. Standard Chartered recently noted that Bitcoin is increasingly positioned as a hedge against volatility and systematic financial risk in the financial market. This is particularly relevant, with the US putting balloons in deficit and Treasury yields remain volatile.
The bullish momentum in Crypto’s influx suggests that, with the growing role in Bitcoin’s institutional portfolio, investors are turning to digital assets as both direction and macro hedge.
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