How are energy investors positioned?
Global cryptocurrency investment products saw significant net inflows, totaling $1.3 billion last week, nearly doubling from the $747.4 million recorded the previous week.
This robust inflow occurred despite a market downturn triggered by President Trump’s tariff announcements, which led to a sharp decline in cryptocurrency prices. The investment surge marks the fifth consecutive week of net inflows, bringing the year-to-date total to $7.3 billion, as reported by CoinShares.
Despite the recent price drops, which reduced the assets under management from a January peak of $181 billion to $163 billion, weekly trading volumes remained consistent at $20 billion.
The market experienced volatility following the tariff news, with bitcoin dropping over 10% to around $91,500 on February 3. Ether and memecoins also faced significant corrections, with ether plunging approximately 36% to around $2,100 and leading memecoins falling 40%.
Bitcoin managed a recovery above the $100,000 level after reports that tariffs on Mexico and Canada would be suspended for a month following an agreement between the governments. Nonetheless, the market faced pressure again when China announced retaliatory tariffs on U.S. goods.
Despite the market turbulence, Bitcoin-based funds attracted $407 million in net inflows last week, now representing 7.1% of Bitcoin’s current market capitalization. U.S. spot Bitcoin ETFs accounted for $203.8 million of these inflows.
Ether funds outshone Bitcoin, with net inflows of $793 million, surpassing Bitcoin funds for the first time this year. This was attributed to significant purchases during the price weakness. U.S. spot Ethereum ETFs contributed $420.2 million to these inflows.
Other cryptocurrencies also saw inflows, with XRP-based funds adding $21 million and Solana funds bringing in $11 million. The U.S. led regional inflows with $1 billion, while Germany, Switzerland, and Canada saw $61 million, $54 million, and $37 million, respectively.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.