Global Crypto Funds See Renewed Inflows After Record Drought, Bitcoin Leading the Pack

On Monday, March 25, CoinShares Head of Research James Butterfill reported that last week, these funds broke their five-week outflow streak—the longest on record

Global cryptocurrency funds are once again seeing net positive inflows after a record drought, with Bitcoin (BTC) leading the pack, crypto data provider CoinShares revealed on Monday, March 25.

According to CoinShares Head of Research James Butterfill, last week saw these funds break their five-week outflow streak—the longest on record, which had been leading to an exodus of $6.4 billion. Specifically, inflows for last week totaled $644 million, signaling “renewed optimism.”

The result is even more impressive considering that these funds recorded net inflows every single day of the week, according to Butterfill. Before this, global crypto funds had seen net outflows for 17 consecutive days.

Bitcoin Led the Influx

Looking at the fund flows by asset, as usual, Bitcoin funds led the pack with net inflows totaling $724 million, even as short Bitcoin funds saw a third consecutive week of outflows with $7.1 million.

Meanwhile, the figures for altcoin investment funds were mixed. Funds based on Ethereum (ETH), Sui (SUI), Polkadot (DOT), Tron (TRX), and Algorand (ALGO) saw outflows of $86 million, $1.3 million, $1.3 million, $950,000, and $820,000, respectively.

Conversely, funds based on Solana (SOL), Polygon (MATIC), and Chainlink (LINK) recorded inflows of $6.4 million, $400,000, and $200,000, respectively.

On a regional level, the majority of inflows came from the U.S., with $632 million. On the other hand, Switzerland, Germany, and Hong Kong-based funds recorded inflows of $15.9 million, $13.9 million, and $1.2 million, respectively.

Last week’s fund inflows follow signs of cooling inflation, as February 2025 inflation numbers came in less than expected. At the same time, Federal Reserve Chair Jerome Powell downplayed concerns that President Donald Trump’s tariffs could send inflation soaring again, asserting that inflation will be “transitory” in his speech following last week’s Federal Open Market Committee meeting (FOMC).

However, despite the promising start to the year with strong returns and record highs in March, market momentum may be slowing down. Moreover, despite the promise of more government-backed tokens and the potential of blockchain technology in various sectors, these factors may not be enough to sustain the market in the long term.

Ultimately, the sustainability of the crypto market recovery will depend on several key factors, including the broader macroeconomic environment, regulatory developments, and the ability of crypto projects to deliver on their promises.