Slowing Inflow of Digital Asset Capital: Policy Uncertainty Dampens Market Sentiment, While Ethereum Demonstrates Resilience in Attracting Investment

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United States Leads Global Fund Inflows, Ethereum Performs Strongest

In terms of regions, the market that saw the most concentrated fund inflows last week was still the United States, recording $175 million, followed by Germany ($47.8 million), Switzerland ($15.7 million), Canada ($9.8 million), and Australia ($6.5 million). In contrast, Brazil and Hong Kong experienced net outflows of $9.2 million and $14.6 million, respectively, with Hong Kong ending its previous record streak of net inflows over several weeks.

In terms of asset classes, Ethereum emerged as the biggest highlight, attracting $296.4 million in funds in a single week, marking the seventh consecutive week of net inflows, with a cumulative amount reaching $1.5 billion, now accounting for 10.5% of the total assets under management (AuM). This is the strongest wave of Ethereum fund inflows since the U.S. presidential election last year, indicating a significant rebound in market confidence in ETH.

Other cryptocurrency assets performed relatively poorly. The emerging public chain Sui attracted a modest net inflow of $1.1 million, while XRP faced net outflows for the third consecutive week, totaling $6.6 million this week, indicating that investor confidence in altcoins has yet to recover.

Bitcoin Experiences Two Consecutive Weeks of Net Outflows

In contrast to Ethereum, Bitcoin recorded net outflows for the second consecutive week, with this week’s outflow amounting to $56.5 million, reflecting significant impacts from policy uncertainty. It is worth mentioning that the “short Bitcoin products,” which move inversely to Bitcoin, also experienced fund outflows, showing that overall market sentiment has shifted to a wait-and-see approach, with no clear bets on price increases or decreases.

Investors Await Clarity on Policies

Coinshares analysts pointed out that although the digital asset market continues to attract long-term capital, due to the unclear U.S. inflation data and interest rate policies, investors are inclined to wait for the next signals from the Federal Reserve in the short term, leading to a temporary slowdown in overall market momentum.