Crypto Rally Returns: ETFs Attract $1.1 Billion Inflows, Highest in Seven Weeks

The cryptocurrency market has regained its bullish momentum as digital asset investment products recorded $1.1 billion in net inflows last week — the strongest weekly figure in seven weeks and a sharp reversal from the previous four-week streak that saw $4.7 billion in cumulative outflows.

The dramatic turnaround, reported by CoinShares on December 2, 2025, underscores renewed institutional confidence amid favorable U.S. policy shifts, improving macro liquidity expectations, and technical breakouts across major assets.

Regional Breakdown: U.S. Dominates, Europe Mixed

• United States: $994 million inflows, accounting for nearly 90% of the global total, driven almost entirely by spot Bitcoin and Ethereum ETFs.
• Canada: $98 million inflows, continuing its steady role as a secondary North American hub.
• Switzerland: $24 million inflows, primarily through established ETP issuers.
• Germany: $57 million outflows — the only major jurisdiction to register net redemptions, largely from legacy inverse and leveraged products.

Bitcoin and Ethereum Lead the Rebound

Bitcoin investment products absorbed $461 million in fresh capital, while Ethereum funds followed closely with $308 million — the strongest weekly ETH inflow since the Pectra upgrade in March 2025.

Perhaps most telling: investors pulled a record $1.9 billion out of short-Bitcoin ETPs (exchange-traded products that bet against BTC price), marking the largest-ever weekly redemption from bearish positions and effectively acting as a massive forced covering event.

What Changed in Just One Month?

The reversal from four consecutive weeks of heavy outflows to the strongest inflow week since mid-October coincides with several catalysts:

1. Clarity from the Trump administration’s pro-crypto executive actions and the accelerated buildup of the U.S. Strategic Bitcoin Reserve.
2. Vanguard’s sudden policy reversal allowing its 50+ million clients to trade spot Bitcoin ETFs.
3. Technical breakouts above key resistance levels ($88,000 for BTC, $2,850 for ETH) that triggered systematic and CTA buying.
4. Year-end portfolio rebalancing as institutions lock in exposure before 2025 performance reporting.

Market Impact and Outlook

Total assets under management across crypto ETPs and ETFs have now climbed back above $135 billion, recovering nearly all losses from the November correction. Trading turnover on regulated Bitcoin ETFs hit $18.4 billion last week — more than double the 30-day average — reflecting both retail and institutional participation.

Analysts note that the combination of short-covering in inverse products and fresh long inflows created a classic squeeze that helped propel Bitcoin past $92,000 and Ethereum toward $2,900 in the days following the report.

With momentum indicators resetting and another $1–2 billion of sidelined capital reportedly waiting in brokerage sweep accounts, the path of least resistance appears higher into year-end — provided macro liquidity conditions remain supportive.

In short, last week’s $1.1 billion inflow didn’t just mark a return of capital; it signaled that the 2025 crypto bull market is firmly back on track, this time with deeper and broader institutional backing than ever before.