Key takeaways
- Institutional money is flowing into crypto at record levels, with Bitcoin and Ethereum leading the charge. While traditional finance players deepen their involvement, global economic shifts are shaping crypto’s role in the broader landscape.
Crypto markets are riding a wave of institutional capital, with $3.7 billion in inflows last week alone, pushing total assets under management to a record $211 billion.
Bitcoin [BTC] and Ethereum [ETH] remain the primary magnets for capital, boosted by Grayscale’s quiet push toward a public listing, a sign that traditional finance is still doubling down.
But zooming out: China’s stronger-than-expected growth dims hopes for more stimulus-driven Bitcoin upside, while Germany’s full BTC exit last year left billions on the table.
Capital is flowing, but the crosscurrents are anything but simple.
Institutional inflows surge as crypto AuM hits ATH
Institutional demand for digital assets surged last week, with crypto investment inflows reaching $3.7 billion, the second-highest weekly total ever.
This pushed total assets under management (AuM) to an all-time high of $211 billion.
Source: Coinshares Report
Bitcoin accounted for $2.7 billion of that total, reinforcing its status as the primary macro hedge within digital portfolios as it approaches parity with gold ETPs.
Ethereum followed with $990 million in inflows, marking its twelfth consecutive week of gains, powered by staking demand and anticipation of key upgrades.
TradFi goes knee-deep in crypto
On the other hand, asset management firm Vanguard Group has become the largest shareholder in Strategy (formerly MicroStrategy). Vanguard now owns over 20 million shares – nearly 8% of the company’s Class A common stock – surpassing Capital Group.
While Vanguard has long expressed skepticism toward Bitcoin and crypto products, its growing equity stake is a big turnaround.
Meanwhile, Grayscale Investments has confidentially filed for an IPO; a move showing that even crypto-native firms are willing to evolve to meet public market standards.
Governments move, and so does Bitcoin
China’s Q2 GDP grew 5.2%, beating expectations, but weak consumer demand and falling property investment suggest more stimulus may be needed.
Source: X
That matters for crypto. Liquidity injections from the People’s Bank of China, like the recent $130.9 billion infusion, have historically correlated with Bitcoin price surges during uncertain economic periods.
Meanwhile, Germany’s sale of 50,000 BTC in 2024 for $3.13 billion now looks costly, as Bitcoin has since doubled, making those holdings worth over $6.6 billion.
As governments respond to economic pressure in different ways, Bitcoin continues to play multiple roles – a hedge, a casualty, or a missed opportunity.
