Institutional Capital Powers Record Crypto Inflows, Ethereum in Spotlight

The cryptocurrency sector has entered a new era of mainstream acceptance, as institutional investors poured in a record $4.39b over the past week—the highest inflow the industry has ever registered. Remarkably, Ethereum has surpassed Bitcoin in new capital absorption, thanks to the explosive popularity of blockchain-based DeFi and the successful launch of new ETFs and ETPs.

Veteran market-watchers believe that this institutionalization of crypto is no longer a vision but a realignment already in effect. Clearer regulatory environments in the US and Europe have fueled investor confidence, paving the way for pension funds, asset managers, and insurance companies to enter the sector in force. The trend is bolstered by significant participation in token unlocks, with more than $442m in newly liquidated coins flooding the market.

This surge marks a pronounced shift in digital asset allocation strategies, emphasizing a broader belief among global asset managers that cryptocurrencies are becoming essential components of diversified portfolios. Consolidation and innovation among major exchanges and custodians are likely to accelerate as more “traditional” capital seeks direct crypto exposure.