Crypto Inflows Surge to $882M Amid Macroeconomic Shifts, Bitcoin Strengthens Role as Hedge Asset

Institutional appetite for digital assets continues to grow, with global crypto investment products attracting $882 million in net inflows over the past week. The latest surge marks the fourth consecutive week of gains and lifts year-to-date inflows to $6.7 billion—just shy of the $7.3 billion peak recorded in early February.

Bitcoin remains the dominant force behind this uptick, accounting for $867 million of the weekly inflows, according to data from CoinShares. The trend underscores Bitcoin's strengthening role as a macro hedge, particularly in an environment marked by inflation concerns, monetary easing, and recessionary fears.

Bitcoin ETFs and Institutional Momentum

Since the launch of spot Bitcoin ETFs in the U.S. in January 2024, cumulative net inflows have reached $62.9 billion, surpassing the previous high of $61.6 billion. This sustained demand highlights a growing institutional conviction in Bitcoin as both a long-term asset and a tactical shield against traditional financial instability.

Ethereum, meanwhile, continues to lag in investor sentiment. Despite recent price recoveries, the asset saw just $1.5 million in inflows last week, suggesting that institutions remain cautious about its short-term trajectory.

In the altcoin space, Sui has emerged as a surprising leader, drawing in $11.7 million in fresh capital—eclipsing Solana both for the week and year-to-date. Sui’s inflows now stand at $84 million YTD, while Solana trails at $76 million after registering $3.4 million in outflows this week.

Macro Trends Provide a Strategic Compass

The rise in crypto inflows is being closely linked to broader macroeconomic forces. A key factor is the expansion of global M2 money supply, which many investors interpret as a sign of mounting liquidity and inflationary pressure. In China, M2 supply has reached a record $326.13 trillion, while in the U.S., stagflation concerns are drawing investors toward alternative assets.

Several U.S. states have taken steps to integrate Bitcoin into public financial strategies. Arizona and New Hampshire have made progress in designating Bitcoin as a strategic reserve asset, although similar efforts in states like Florida have stalled.

Adding to the momentum, Goldman Sachs has quietly increased its exposure to Bitcoin through ETF-linked funds and raised its 12-month U.S. recession probability to 45%. Meanwhile, Standard Chartered has framed Bitcoin as an emerging hedge against Treasury volatility and fiscal instability—an increasingly attractive proposition amid growing federal deficits.

Institutional Outlook: Cautious Optimism

While many analysts welcome the positive correlation between crypto inflows and macro shifts, some caution against overreliance on these narratives. Still, the data points to a growing consensus: digital assets are evolving from speculative tools into institutional instruments shaped by global monetary dynamics.

The continued rise in inflows, especially into Bitcoin, reflects a broader realignment of investor strategies. As uncertainty persists across traditional finance, digital assets are gaining credibility as both directional bets and defensive hedges.