According to the latest report released by cryptocurrency asset management company CoinShares, last week digital asset investment products experienced a strong capital inflow, attracting as much as $3.4 billion, marking the third-best single-week performance in history.

This data is particularly striking after several weeks of capital outflows. In the previous week, the cumulative inflow from the beginning of the year was only $171 million, almost stagnant.

Bitcoin is the biggest winner, accounting for over 90% of inflows.

In this wave of capital inflow, Bitcoin has become the absolute main character, accounting for 93% of the total inflows. After concerns about the U.S. 'reciprocal' tariff policy eased, investors flocked to spot Bitcoin ETFs, driving capital back in. Meanwhile, Bitcoin's price briefly broke through the $95,000 mark.

In addition to Bitcoin, Ethereum and XRP have also received some degree of favor, attracting approximately $183 million and $31 million in investments, respectively.

James Butterfill, head of research at CoinShares, stated, 'We have rebounded from nearly zero to $3.5 billion, which is a signal worth being 'cautiously optimistic' about.'

Are retail investors taking over from institutions? Market enthusiasm is warming up but has not yet fully recovered.

Although this round of warming is exciting, Butterfill also pointed out that the cumulative inflow of funds this year has reached a peak of $7.4 billion; the current rebound is still some distance from a complete recovery. He stated, 'At least one to two more weeks of strong inflows are needed to confirm that the market has entered a new adoption cycle.'

He also pointed out that although institutional participation in Bitcoin has increased, the growth rate remains moderate. The current market activity seems to be more driven by retail investors rather than institutional investors.

Since Trump proposed the possibility of imposing tariffs on multiple countries on April 2, the market had once fallen into uncertainty. Now the situation has somewhat improved, but institutional investors' actions remain cautious, while retail investors continue to drive the market upward.

It is worth noting that Butterfill mentioned that the current market structure is still suitable for 'basis trading'—which means profiting from the price differences between spot and futures. This strategy is usually led by institutions and is also seen as an important indicator of the activity level of professional capital in the market.

However, based on current data, the activity level of institutions remains moderate, and large-scale involvement has yet to arrive.

Key observation going forward: 13F disclosures in mid-May.

Butterfill also stated that the market may not fully understand Wall Street's attitude toward crypto assets until mid-May, when major U.S. institutions will submit a new round of 13F disclosure documents. These documents will further reveal institutional investors' specific allocations and changes in positions regarding Bitcoin and other crypto assets.

Can last year's spectacle be replicated?

In 2023, driven by the approval of spot Bitcoin ETFs, crypto asset funds attracted a total of $29 billion in inflows throughout the year. However, Butterfill warned that due to the influence of the macro environment, particularly the uncertainty of tariff policies, the rapid capital-raising scenario seen last year may not be repeated this year.

The crypto market is experiencing a rebound, especially as Bitcoin-related products regain favor among investors. Although current inflow data is very strong, it remains to be seen whether the market can maintain this strong momentum in the coming weeks to truly return to a stable growth trajectory.

Behind the enthusiasm of retail investors, the attitude and actions of institutions will become key factors determining the depth and breadth of this rebound.