Crypto Inflows Surge to $2B Ahead of Fed Decision, Bitcoin Leads the Charge

This marks the third consecutive week of positive inflows, bringing the cumulative total to $5.5 billion over that period — a dramatic reversal from the nine straight weeks of outflows that preceded it.

CoinShares attributes this turnaround to shifting sentiment in global financial markets, likely influenced by anticipation surrounding the U.S. Federal Reserve’s upcoming interest rate decision. With market conditions remaining volatile and investors seeking alternative hedging strategies, digital assets appear to be regaining favor, particularly among professional and institutional players.

Bitcoin Reclaims the Spotlight

Bitcoin (BTC) continues to dominate institutional portfolios, pulling in $1.84 billion in fresh capital during the week. This reaffirms its role as the flagship digital asset and a preferred vehicle for risk-adjusted exposure to the sector. The inflow also reflects a growing appetite for BTC-based products, especially as it hovers near the psychological $100,000 mark.

Ethereum (ETH), while still trailing Bitcoin, has regained momentum. ETH-focused products saw $149.2 million in inflows last week, bringing its two-week total to $336 million. Analysts note that renewed optimism in Ethereum is likely tied to the broader narrative around ETH 2.0 developments and increasing discussion of a possible spot ETF approval in the coming months.

Altcoins Gain Modest Traction

While Bitcoin and Ethereum captured the lion’s share of investment, several altcoins also recorded notable inflows. XRP saw $10.5 million, Solana (SOL) pulled in $6 million, Tezos (XTZ) posted $8.2 million, and Cardano (ADA) attracted $1.2 million. These figures suggest that investors are beginning to diversify again, albeit cautiously, into altcoin markets amid broader signs of stabilization.

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U.S. Dominates Regional Flow

Regionally, the United States led inflows by a significant margin, contributing $1.92 billion to the weekly total. This dominance reflects a resurgence in U.S.-based crypto investment platforms and funds, which have benefited from increasing regulatory clarity and institutional participation — particularly after the approval of spot Bitcoin ETFs earlier this year.

As the Federal Reserve prepares to announce its interest rate decision for May, all eyes are on how monetary policy may influence risk assets like cryptocurrencies. A dovish stance could further accelerate inflows, while a hawkish tone might trigger short-term volatility.

Still, with $5.5 billion flowing into the market over just three weeks, sentiment appears to be shifting decisively in favor of crypto — signaling that a new bullish chapter may be underway.

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