Digital asset funds reported inflows of $117.8 million, maintaining a five-week trend, although this was the smallest weekly increase during that time. This overall figure suggests a late recovery in the market. Earlier in the week, the market experienced $619 million in outflows from Monday to Thursday. However, a significant turnaround occurred on Friday, with a remarkable $737 million inflow in just one day, ultimately resulting in a positive weekly balance. CoinShares noted that this surge marks one of the largest daily inflows recorded in 2026, likely indicating a notable improvement in risk appetite. Meanwhile, total assets under management remained stable at $155 billion. Investment products linked to Bitcoin attracted over $192 million in the past week, bringing the total for the year to $4.2 billion, although this figure is still below recent weekly averages of nearly $1 billion. A small faction of investors maintains a bearish outlook on BTC, with Short Bitcoin products seeing $6 million in inflows. Multi-asset products attracted $3.6 million, while XRP gained $3 million during the same timeframe. Conversely, Ethereum experienced outflows of $81.6 million, ending a three-week streak of gains exceeding $190 million, while Solana also saw over $11 million in outflows. In its latest Digital Asset Fund Flows Weekly Report, CoinShares highlighted that the drop in participation from nine assets to four during the week signifies a weakening sentiment before rebounding on Friday. The U.S. market attracted $47.5 million, significantly lower than the $1.1 billion of the previous week, reflecting a slowdown. In contrast, Germany secured $43.8 million, and Canada garnered $16 million, showcasing steadier demand. Smaller inflows were recorded in Switzerland and Australia at $5.2 million and $4 million, respectively. Additionally, Bitcoin commenced May on a robust trajectory, breaking above $80,000 for the first time since January 31. QCP Capital, based in Singapore, noted a rising correlation between Bitcoin and U.S. stocks, indicating a renewed connection with broader risk assets. Notably, BTC’s rally persisted even as Strategy paused its purchases, suggesting that the market may be gaining strength from a broader support base beyond a single narrative. Institutional demand also remains steady, with QCP underscoring the importance of maintaining levels above the $82,000 to $83,000 range for ongoing momentum. Implied volatility remains near annual lows, while the VIX is around 17, indicating that markets are largely overlooking geopolitical risks, though the current situation is still fluid. Upcoming labor data and earnings reports from Strategy, Coinbase, and Block may contribute to market fluctuations in the near term.
