Crypto Fund Assets Hit All-Time High as Bitcoin Becomes a Global Hedge

Crypto funds saw record inflows in May, highlighting a shift in global investor sentiment amid rising market volatility and declining confidence in traditional assets. According to Morningstar, net inflows of $7.05 billion were recorded across 294 crypto funds last month, pushing total assets under management to an all-time high of $167 billion.

Bitcoin’s Re-emergence as a Portfolio Hedge

A growing number of investors are turning to Bitcoin and digital assets not merely for speculation but for hedging and diversification:

• 15% surge in Bitcoin over the past three months

• Outperforming the MSCI World Index (+3.6%) and even gold (+13.3%)

• Institutional backing, especially after the approval of spot Bitcoin and Ether ETFs, is lending long-term credibility to the asset class

Nicolas Lin, CEO of Aether Holdings, noted that Bitcoin is “starting to come into its own again,” gaining utility as both a risk hedge and diversifier.

Capital Outflows from Traditional Assets

While crypto funds thrived, traditional assets saw capital flight:

• $5.9 billion in net outflows from global equity funds

• $678 million exited gold funds—ending a 15-month inflow streak

This divergence points to a reallocation of risk, as rising bond yields, a weakening dollar, and equity market uncertainty erode confidence in U.S.-centric portfolios.

Accessing Market-Wide Crypto Trends

To explore daily price trends and fund movements, investors can track:

• Cryptocurrency Daily – for up-to-date insights on price action and volatility across coins.

• Crypto News API – to monitor evolving narratives and sentiment influencing institutional and retail flows.