Institutional Capital Pours Into Crypto—Short-BTC Caps

• Institutional capital drove $2.7 billion in crypto inflows, led by strong U.S. demand.
• Short-term Bitcoin outflows hit $2.9 million, indicating growing investor confidence.

Institutional capital continues to make its way into the digital asset space, with fresh inflows of $2.7 billion recorded last week. This brings total inflows for the first half of 2025 to $17.8 billion. This nearly matches last year’s performance.

Most of this capital originated from the United States, while confidence in Bitcoin has led to outflows from short-BTC products.

US Leads Surge as Bitcoin Dominates Inflows

CoinShares’ report stated that investment products linked to digital assets posted another strong showing last week. This marked the 11th straight week of gains. It is worth noting that the United States led the way, with $2.65 billion in inflows

This indicates that institutional capital remains concentrated mainly in American markets. Germany and Switzerland followed with modest contributions of $19.8 million and $23 million, respectively. Meanwhile, regions like Hong Kong and Brazil experienced continued outflows, indicating a shift in regional investor behavior.

The largest digital asset, Bitcoin, remained the top choice for institutional capital, attracting $2.2 billion last week alone. That figure represents 83% of all weekly inflows. Year-to-date, Bitcoin has attracted nearly $15 billion in investment. Interestingly, as noted earlier, this occurred despite Bitcoin’s apparent demand turning negative, as new buyers were unable to absorb the pressure from miners and long-term holders.

The largest altcoin, Ethereum, also posted strong gains, adding $429 million last week to push its year-to-date total to $2.9 billion. This suggests that, while Bitcoin remains the primary focus, institutions continue to support Ethereum’s long-term potential actively. Still, CNF reported that last week, Ethereum recorded 1.75 million transactions, the third-highest daily count in the network’s history.

On the other hand, inflows into altcoins, such as Solana, remain modest. Solana has drawn $91 million so far in 2025. XRP, Sui, Cardano, and Chainlink also saw minor inflows, with XRP leading that group at $219 million for the year. Interestingly, as mentioned in our previous article, that same week, Robinhood launched micro futures contracts for XRP and Solana in the United States.

Short-BTC Sees Outflows as Sentiment Shifts

A clear signal of growing optimism is the continued decline in short-Bitcoin products. These investment tools, designed to profit from price drops, saw $2.9 million in outflows last week. Year-to-date, outflows now total $12 million. This suggests that most investors no longer view betting against Bitcoin as a viable option, a key indicator of market sentiment.

Grayscale Investments, despite its long-standing presence, saw weekly outflows of $5 million and has lost $1.65 billion in assets this year. In contrast, iShares Bitcoin Trust dominated with over $1.5 billion in new inflows last week and a staggering $17 billion for the year.

Total assets under management in digital investment products now stand at $184 billion. With strong institutional capital support, continued inflows, and reduced short interest, the mood in the crypto market is shifting toward cautious optimism.

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