Cryptocurrency investment products have experienced a substantial surge in inflows, propelling the year-to-date total beyond $10 billion, according to CoinShares, a prominent European crypto investment manager. Data released on May 26 reveals that global crypto exchange-traded products (ETPs) amassed $3.3 billion in inflows during the week ending May 24, bringing the total for 2025 to a staggering $10.8 billion. This uptick underscores the burgeoning investor appetite for digital assets amidst economic uncertainties.
Unraveling the Numbers: A Closer Look
Driving this week’s inflows, Bitcoin ETPs led the charge with an impressive $2.9 billion, capturing a quarter of the year’s inflows alone. As Bitcoin soared past the $110,000 mark on May 22, investors didn’t shy away from exploring short-BTC products either, with inflows hitting $12.7 million—the highest since December 2024. Such movements highlight the complex strategies investors are deploying as they navigate the volatile crypto landscape. This aligns with the ongoing dominance of Grayscale’s Bitcoin Trust in ETF revenue, as detailed in our recent analysis.
James Butterfill, CoinShares’ head of research, pointed out that total assets under management (AUM) in crypto ETPs briefly hit an unprecedented $187.5 billion. “We believe that growing concerns over the US economy, driven by the Moody’s downgrade and the resulting spike in treasury yields, have prompted investors to seek diversification through digital assets,” Butterfill noted, elucidating the broader economic context influencing these investment trends.
The Ripple Effect and Ether’s Ascent
While Bitcoin commanded the spotlight, Ether (ETH) ETPs weren’t far behind, witnessing robust inflows totaling $326 million last week. This marks the fifth consecutive week of gains for Ethereum, buoyed by the successful Pectra upgrade that went live on May 7. The upgrade has injected fresh momentum into Ethereum’s ecosystem, bolstering investor confidence.
Conversely, XRP ETPs experienced a stark reversal, recording outflows of $37.2 million—the largest on record—after an impressive 80-week streak of inflows. This exodus comes despite two potentially bullish developments for XRP: a potential spot XRP exchange-traded fund in the US and a significant $2.2 billion in XRP futures. Market analysts speculate that these outflows may be tied to XRP’s lackluster price performance, raising questions about the asset’s near-term trajectory.
Record-Breaking Trends and Future Prospects
The latest figures from CoinShares mark yet another record-breaking milestone for crypto ETPs. Notably, in mid-May, the market witnessed an infusion of $785 million in new inflows, which catapulted the year-to-date total to $7.5 billion by May 16. This surge not only eclipsed the previous peak of $7.2 billion recorded in February but also counterbalanced the nearly $7 billion of outflows observed amid a price correction earlier in the year.
Looking ahead, the trajectory of crypto ETPs appears poised for continued growth, albeit with a potential for volatility as the global economic landscape remains fraught with uncertainty. Butterfill’s insights into the interplay between traditional economic stressors and digital asset investment strategies highlight a critical juncture for investors seeking refuge in cryptocurrencies. This sentiment echoes predictions that Bitcoin ETFs and government adoption could drive BTC to $1 million by 2029, as explored in our Finance Redefined coverage.
As the market evolves, the question remains: Can this momentum be sustained? With the US economy’s outlook murky and regulatory landscapes shifting, digital assets seem to offer a beacon of diversification—but not without their own set of risks and challenges. Investors and analysts alike will be watching closely as the crypto market continues to chart its unpredictable course through 2025.
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This article is based on: Crypto ETPs see $3.3B weekly inflows, top $10.8B year to date
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
