Crypto fund assets hit a record high of $167 billion in May, according to Reuters, with 294 crypto funds receiving $7.05 billion in net inflows. As trade tensions ease and risk appetite grows, investors are increasingly turning to crypto to hedge against market volatility and diversify away from U.S. holdings.

Bitcoin surged over 15% in the past three months, outperforming gold (+13.3%) and the MSCI World Index (+3.6%). Aether Holdings’ CEO Nicolas Lin noted that Bitcoin is regaining traction—not only as a volatile asset but as a strategic hedge—adding that crypto is becoming a permanent fixture in diversified portfolios.

CoinShares data showed Bitcoin funds attracted $5.5 billion and Ethereum funds saw $890 million in inflows in May. Meanwhile, global equity funds posted a net outflow of $5.9 billion, and gold funds recorded their first outflow in 15 months, totaling $678 million.

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