Crypto Funds See Strong Revival as Bitcoin and Ethereum Rally Sparks Rs. 18,000-Crore Inflows

Global cryptocurrency investment products recorded their strongest weekly inflows in nearly three months, driven by a sharp rally in Bitcoin and Ethereum. Digital asset funds attracted approximately Rs. 18,000 crore in fresh capital, signaling renewed investor confidence after a prolonged period of caution. The surge reflects improving market sentiment, rising prices of leading cryptocurrencies, and growing institutional participation. Analysts say the rebound highlights a shift from defensive positioning toward selective risk-taking, as investors reassess the long-term role of crypto assets within diversified portfolios amid stabilizing macroeconomic conditions.

Crypto Markets Regain Momentum
The cryptocurrency market posted a notable rebound as Bitcoin and Ethereum led a broad-based rally, lifting prices and sentiment across digital assets. Bitcoin’s steady climb, coupled with Ethereum’s renewed strength, helped reverse weeks of subdued activity. The price movement encouraged both institutional and sophisticated retail investors to re-enter the market, translating into significant capital flows into crypto-linked investment products.

Market participants view the rally as a sign that selling pressure has eased, at least temporarily, allowing fundamentals and longer-term positioning to regain influence.

Fund Inflows Hit Three-Month High
Crypto-focused investment funds recorded inflows of about Rs. 18,000 crore during the week, marking the strongest showing in nearly three months. Bitcoin-linked products accounted for the majority of the inflows, underscoring its continued dominance as the preferred gateway asset for investors seeking exposure to the sector. Ethereum-based funds also saw a meaningful rise in allocations, reflecting optimism around its evolving ecosystem and upcoming network developments.

The scale of inflows suggests a decisive improvement in risk appetite after weeks of muted engagement.

Institutional Investors Step Back In
The latest data points to a gradual return of institutional capital, which had largely remained on the sidelines amid regulatory uncertainty and volatile macroeconomic signals. Asset managers appear to be selectively increasing exposure, favoring liquid and established cryptocurrencies over smaller, higher-risk tokens. This cautious but deliberate approach indicates growing confidence without a full-scale return to speculative excess.
Analysts note that institutions are increasingly treating crypto as a tactical allocation rather than a fringe asset.