Digital asset investment products recorded $857.9 million in inflows last week, marking the sixth straight week of positive flows as improving sentiment around the proposed U.S. CLARITY Act lifted investor confidence.
According to the latest weekly report from CoinShares researcher James Butterfill, the latest inflows were the largest since April 24, with investors reacting positively to developments surrounding stablecoin regulation in the United States.
The positive response followed the release of the final compromise text on stablecoin yield by Senators Thom Tillis and Angela Alsobrooks on May 1. Lawmakers also maintained support for the proposal despite reported opposition from parts of the banking industry ahead of an expected Senate Banking Committee markup this week.
Investors are now closely watching whether the Senate Banking Committee will formally mark up the CLARITY Act before the May 21 Memorial Day recess, a deadline many market participants see as critical for the bill’s future.
Total assets under management (AuM) across digital asset investment products climbed to $160 billion during the period. Bitcoin also moved above $80,000 on Monday, reaching its highest level since the market correction seen in February.
Bitcoin leads while short positions decline
Bitcoin remained the main driver of inflows, attracting $706.1 million during the week and pushing its year-to-date total to $4.9 billion.
At the same time, short-Bitcoin investment products recorded $14.4 million in outflows, the largest weekly decline this year. The move suggests investors are reducing bearish positions as confidence in the current rally strengthens.
The United States accounted for the majority of inflows with $776.6 million, sharply higher than the previous week’s $47.5 million. European markets also saw steady demand, with Germany posting $50.6 million in inflows, while Switzerland and the Netherlands recorded $21.1 million and $5 million, respectively.
Ethereum posted $77.1 million in inflows, reversing the previous week’s $81.6 million outflows as investor demand returned to the asset. Meanwhile, Solana attracted $47.6 million, while XRP saw $39.6 million in inflows, both showing stronger activity compared to recent weeks. Multi-asset investment products were the only major category to record outflows, losing $5.5 million during the week.
What is pushing the digital asset flows
The strong inflows into digital asset investment products also come as institutional investors continue to increase their control over the Bitcoin market.
Recent market data shows institutional entities, including U.S. spot Bitcoin ETFs and corporate treasury firms, now hold nearly 30% of Bitcoin’s circulating supply, equal to roughly 5.94 million BTC. Analysts say these firms are absorbing Bitcoin at a pace estimated to be six times higher than the new daily mining supply, tightening available market liquidity.
Market observers say many large investors are increasingly viewing Bitcoin as a long-term portfolio hedge and strategic reserve asset rather than a speculative trade, helping support continued inflows into crypto investment products.
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