Bitcoin Leads $226M Inflows, Yet Crypto Fund Values Shrink Further

Bitcoin continued to attract most of the new money flowing into crypto investment products last week. This  was not enough to stop the total value of crypto funds from falling. According to a report from CoinShares on March 31, cryptocurrency exchange-traded products (ETPs) recorded $226 million in inflows last week. This was mostly led by Bitcoin.

However, even with two weeks of steady inflows, the total assets under management (AUM) of crypto funds have fallen to their lowest point this year due to declining crypto prices.

Bitcoin Drives Most of the Inflows

Bitcoin remained the top choice for investors. Out of the $226 million that entered crypto ETPs last week, $195 million went into Bitcoin-related investment products. This shows that Bitcoin is still the main focus for investors looking for exposure to cryptocurrencies.

Meanwhile, short-Bitcoin products, which are designed to profit when Bitcoin prices fall, continued to lose investor interest. These products saw outflows of $2.5 million last week. This marked the fourth straight week of withdrawals. The steady outflows from short-Bitcoin products suggest that many investors expect Bitcoin’s price to recover or remain stable in the near term.

Other cryptocurrencies, often called altcoins, also saw some improvement. After suffering from four straight weeks of heavy outflows totaling $1.7 billion, altcoin investment products finally attracted $33 million in new inflows. Among individual altcoins, Ethereum (ETH) led the inflows with $14.5 million. This was followed by Solana (SOL) with $7.8 million, XRP with $4.8 million, and Sui (SUI) with $4 million. This is a small but positive shift in sentiment towards altcoins, which had been under selling pressure for weeks.

Total Crypto Fund Value Keeps Falling

Despite the inflows, the total value of assets held by crypto investment funds continues to shrink. By March 28, the combined assets under management of all crypto ETPs dropped to $133.9 billion. This was the lowest figure so far in 2025. Just earlier this month, on March 10, AUM stood at about $142 billion. This represents a 5.7% decline in less than three weeks.

James Butterfill, head of research at CoinShares, said the decline is mainly caused by falling cryptocurrency prices, which have affected the value of assets held in the funds. Since the start of the year, Bitcoin’s price has dropped by 13.6%, while the total market capitalization of all cryptocurrencies has fallen by nearly 20%.

Although the recent inflows show that some investors are returning to crypto funds, Butterfill pointed out that they are still cautious. One reason for this caution is that inflation data in the United States, measured by the core Personal Consumption Expenditures (PCE) index, came in higher than expected. Higher inflation often leads investors to be more careful with riskier assets like cryptocurrencies.