The crypto craze is in full swing. Exchange-traded funds (ETFs) that track crypto assets raised a record-breaking $5.95 billion last week, a clear sign that investors are piling into digital assets as Bitcoin continues to smash records.
The flood of new money, reported by the data firm Coinshares, came as bitcoin, the world’s largest cryptocurrency, soared past its previous peak to hit a new all-time high of $126,223 on Monday.
The United States is leading the charge, with a massive $5 billion flowing into crypto ETFs last week alone. Switzerland and Germany also saw record inflows. Bitcoin was the star of the show, attracting $3.55 billion, but other cryptocurrencies, such as Ethereum and Solana, also saw significant investments.
So what’s driving the rally? A few key factors are at play. A weakening U.S. dollar, driven by trade uncertainty and economic concerns, is prompting investors to seek alternative investment opportunities. “This level of investment highlights the growing recognition of digital assets as an alternative in times of uncertainty,” said James Butterfill, head of research at CoinShares.
The rally has also been fueled by more supportive policies from the Trump administration, a surge in demand from big institutional investors, and bitcoin’s growing connection to the traditional financial system. With some analysts now predicting that bitcoin could one day sit alongside gold on central banks’ balance sheets, the crypto bull run has plenty of room to run.
