Crypto funds see $858M inflows, sixth straight week of gains

Crypto exchange-traded products (ETPs) recorded $858 million in inflows last week, extending the winning streak to six consecutive weeks with cumulative inflows of $4.9 billion, according to CoinShares. This sustained capital flow coincides with the ongoing Bitcoin halving cycle, which historically reduces miner rewards and tightens supply. The inflows also align with a broader drawdown in exchange reserves, indicating that coins are moving to cold storage or long-term custody. Bitcoin led the charge with $706 million in inflows, reflecting strong investor appetite as the cryptocurrency's price topped $80,000. Meanwhile, short-Bitcoin products saw $14 million in outflows, the largest annual outflow on record, signaling a shift in bearish sentiment. The outflows from short positions suggest that traders are unwinding hedges, possibly due to a favorable macroeconomic backdrop with a weakening US dollar index (DXY) and stabilizing US Treasury yields.

The sustained inflows into crypto ETPs suggest growing institutional confidence in digital assets, particularly as macroeconomic conditions remain favorable for risk assets. Bitcoin's dominance has risen above 60%, indicating that capital is concentrating in the largest cryptocurrency rather than altcoins. This trend is reinforced by on-chain data showing increased whale concentration, where large holders accumulate during price dips. Miner break-even economics have also improved post-halving, as higher Bitcoin prices offset reduced block rewards. The combination of ETF inflows, declining exchange reserves, and bullish on-chain metrics creates a supply squeeze that could underpin further price gains. For traders tracking these moves, NowPrice's crypto page offers real-time pricing on Bitcoin and other major cryptocurrencies to gauge current market dynamics.

Looking ahead, the continued inflow streak could support further price appreciation if demand persists. However, traders should monitor upcoming economic data and Federal Reserve policy signals, as shifts in interest rate expectations could impact risk sentiment across crypto markets. A hawkish pivot by the Fed could strengthen the dollar and pressure risk assets, while a dovish stance may accelerate inflows. Additionally, the sustainability of the halving-driven rally depends on whether ETF demand can absorb miner selling pressure. Key levels to watch include Bitcoin's resistance near $85,000 and support around $75,000, with volume and open interest providing clues on momentum.