Crypto ETFs Draw $1.1 Billion in Net Inflows Amid Low Volumes

Crypto ETFs have seen a significant surge in net inflows over the past week, totaling $1.1 billion. This marks their strongest performance since April 2025, and it comes despite spot market trading volumes being notably subdued.

The inflows are largely driven by institutional demand, with Bitcoin ETFs capturing the bulk of the flows. The Ethereum ETFs also contributed meaningfully to the overall performance, indicating that institutional appetite is no longer confined to Bitcoin alone.

The Coldcard hardware wallet exploit may have played a role in triggering this surge in institutional buying. According to Bloomberg ETF analyst Eric Balchunas, net inflows into several Bitcoin funds remained steady after the vulnerability was disclosed. This suggests that certain investors are opting for regulated, insured vehicles over self-custody.

The decoupling between spot market volumes and ETF flows is a notable aspect of this trend. While retail traders seem to be taking a wait-and-see stance, institutional investors continue to accumulate via regulated vehicles with long time horizons.