Crypto investment products are maintaining their upward trajectory, despite a cooling in weekly inflows compared to the significant spikes witnessed in April. A recent report by CoinShares highlights that global crypto investment products saw a robust inflow of US$882 million (approximately AUD $1.34 billion) in the past week. This brings the year-to-date inflows to US$6.7 billion (around AUD $10.3 billion), just shy of the record US$7.3 billion (AUD $11.7 billion) set in February.
Notably, the past four weeks have accounted for a massive US$6.3 billion (AUD $9.73 billion) of this total, equating to a staggering 93% of the overall activity for the year.
### Bitcoin Continues to Dominate
Bitcoin remains the star of the cryptocurrency space, drawing more than US$860 million (AUD $1.32 billion) last week alone. This surge has elevated the total assets of US-listed Bitcoin ETFs to US$62.9 billion (AUD $97.2 billion) since their inception in January 2024, surpassing the previous high of US$61.6 billion (AUD $95.1 billion) reached in February.
In contrast, Ethereum, the second-largest cryptocurrency by market capitalisation, managed to attract a modest US$1.5 million (AUD $2.32 million) during the same timeframe. However, altcoin Sui made headlines by gaining US$11.7 million (AUD $18 million), overshadowing both Ethereum and Solana and lifting its year-to-date inflows to US$84 million (AUD $129.7 million).
XRP also recorded an inflow of US$1.4 million (AUD $2.15 million), resulting in a year-to-date total of US$258 million (AUD $398 million) and assets under management reaching US$1.35 billion (AUD $2.01 billion). Most of the investor interest appears concentrated on a few leading cryptocurrencies.
### BlackRock’s iShares ETF: A Key Player
The bulk of the capital influx has been attracted by BlackRock’s iShares Bitcoin ETF, which alone amassed US$1 billion (AUD $1.54 billion) last week—more than the entire industry combined on paper for the week. Since its launch, the iShares ETF has accumulated US$8.1 billion (AUD $12.5 billion) in net inflows, exceeding the total inflows of the broader market for 2025.
### Drivers Behind the Capital Inflows
The report from CoinShares attributes these substantial inflows to a variety of macroeconomic factors. Key among these is the expanding global M2 money supply, which has significantly enhanced liquidity in the markets, leading investors to seek out more stable assets.
James Butterfill, CoinShares’ Head of Research, also pointed out that worries about stagflation in the US—a scenario where inflation remains high while economic growth stalls—are encouraging investors to pivot towards alternative assets such as Bitcoin. He stated:
> “We believe the sharp increase in both crypto prices and inflows is driven by a combination of factors: a global rise in M2 money supply, stagflationary risks in the US, and several US states approving Bitcoin as a strategic reserve asset.”
A number of US states, including Arizona and New Hampshire, have taken steps to recognise Bitcoin as a strategic asset, further driving interest in the cryptocurrency.
As the appetite for cryptocurrency continues to grow, it remains evident that investor sentiment is influenced by broader economic conditions, as well as strategic moves by financial institutions and state governments.
In summary, the momentum in the cryptocurrency market is largely dominated by Bitcoin while the broader investment landscape is shaped by macroeconomic trends and strategic financial positioning. As we progress through 2025, the crypto sector seems well-positioned for continued growth, with significant capital inflows highlighting the market’s resilience and appeal.
