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We continue to regularly examine the state of institutional demand for cryptocurrencies. After several weeks, a significant change is occurring. Due to Trump’s insistence on tariffs and negative macroeconomic data, the price of BTC is stuck around $97,000. So, what is the current situation with institutional inflows?
Institutional Cryptocurrency Demand
For 19 weeks, there have been consistent net inflows into cryptocurrency investment products that attract institutional and professional investors. Demand in the ETF and ETP channels approached $30 billion after the elections. In the first 19 weeks following the launch of the U.S. Spot BTC ETF in January 2024, there was a net inflow of $16 billion.
In the 19 weeks since the November elections, we saw a net inflow of $29.4 billion. However, last week marked the first time that net inflows shifted to net outflows, experiencing a $415 million sale.
Why Did Demand Decrease?
Comments made by Fed Chair Jerome Powell during his congressional testimony and inflation data exceeding expectations disrupted the market. Likely for this reason, ETF investors turned to selling. Most of the outflows, totaling $464 million, occurred in the U.S., while other countries did not experience significant sentiment changes. Germany, Switzerland, and Canada hosted net inflows of $21 million, $12.5 million, and $10.2 million, respectively.
The good news is that last week’s outflows did not trigger significant inflows into short BTC products, which even experienced a $9.6 million outflow. Therefore, investors remain optimistic about long-term performance beyond the short-term fluctuations. Following a massive net inflow nearing $30 billion, an outflow of less than half a billion may not be too concerning.
Among altcoins, Solana 
$163 (SOL) saw the highest inflows. XRP Coin recorded an inflow of $8.5 million, while SUI attracted attention with $6 million. Blockchain-focused stocks also accumulated total inflows of $220 million since the beginning of the year, hosting $20.8 million in the last week.
As this article was prepared, the price of BTC hovered around $96,000, remaining nearly stable around the $97,000 mark over the weekend.
