Crypto market turning point: Ethereum breaks through, Bitcoin halts increase

In the past week, cryptocurrency investment products managed by large asset management companies such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares recorded a net inflow of $286 million globally, according to data from CoinShares. However, it is noteworthy that Ethereum (ETH) has seen strong growth, while inflows into Bitcoin (BTC) show signs of slowing down.

This is the seventh consecutive week of recorded growth, with a total net inflow of $10.9 billion. However, the total assets under management (AUM) of cryptocurrency funds have decreased from an all-time high of $187 billion to $177 billion at the end of last week, as the value of these cryptocurrencies declined amidst market uncertainties regarding U.S. tariff policies. James Butterfill, Head of Research at CoinShares, noted in a report on Monday that "although the inflow continues to be strong, market volatility and current tariff policies have reduced the total value of assets under management."

Source: CoinShares## Ethereum sets a growth record

Investment products in Ethereum continued to lead over the past week, with inflows reaching $321 million. This marks a streak of six consecutive weeks of growth, bringing total inflows into Ethereum to $1.2 billion – the strongest increase since December 2024. Butterfill stated:

"Market sentiment has shown significant improvement, and investors are currently placing their trust in the sustainable development potential of Ethereum, especially in the context of network improvements and the increase of DeFi applications."

Ethereum ETFs in the United States contributed $285.8 million in total weekly inflows. This indicates that Ethereum continues to maintain strong interest from investors, especially in the context of several important events such as the Ethereum network upgrade.

Bitcoin has paused after a strong growth streak

Although Bitcoin is the dominant asset in the cryptocurrency market, this week the inflow of money into Bitcoin-based funds has recorded a slowdown. After rising sharply in previous weeks, Bitcoin encountered a reversal in the middle of the week when a court decision declared the U.S. tariffs illegal. As a result, the inflow into Bitcoin funds was only $8 million on Friday, ending a six-week growth streak in which Bitcoin recorded a total of $9.6 billion in net cash flows.

Bitcoin spot ETF products in the United States experienced a sharp decline with $144.8 million in net outflows, which has ended a 34-day growth streak and $9.4 billion for IBIT products.

Capital flows out of XRP and international markets

Another notable point is that investment products in XRP have witnessed net outflows for the second consecutive week, with a total value of 28.2 million dollars. This volatility reflects the uncertainty about the future of XRP in the context of increasing legal issues and competitive pressures in the crypto market.

Regionally, the flow of funds into cryptocurrency products from countries outside the United States has shown a clear divergence. The United States remains in the lead with a net inflow of 199 million dollars, but Hong Kong has seen a strong increase with inflows reaching 54.8 million dollars – the best growth since cryptocurrency trading products were launched here in April 2024. Additionally, the German and Australian markets also recorded inflows of 42.9 million dollars and 21.5 million dollars, respectively.

However, Switzerland has witnessed the largest net outflow of funds in a week, with $32.8 million withdrawn from cryptocurrency investment products in the country.

Although the crypto market is facing significant volatility, cryptocurrency investment products continue to attract large inflows from investors. Ethereum, with the rise of applications and network improvements, is emerging as an attractive option. Meanwhile, Bitcoin, despite facing some challenges, remains the dominant asset and has a strong influence in the market.

! Monthly price performance of BTC and ETH | Source: The BlockInvestors are still looking for stability and long-term growth potential in this market, especially in the context of tariff policies and legal issues that may impact the development of the market. However, the diversification and shifting of cash flows between different crypto products is showing a more mature and professional market picture.

Emma