Institutional interest in digital asset investment products saw a significant increase last week, with $882 million in crypto inflows globally. This surge marked the fourth straight week of gains, bringing year-to-date inflows to $6.7 billion, closing in on the peak of $7.3 billion seen in early February.

According to the latest CoinShares report, there have been four consecutive weeks of positive flows. The previous week recorded $2 billion in crypto inflows and $3.4 billion in the week before that, as investors sought the haven status of digital assets.

Bitcoin led the way with $867 million in inflows, reflecting its growing role as a macro hedge amid economic uncertainty. Since the launch of spot Bitcoin ETFs in the US in January 2024, cumulative net inflows have surpassed previous highs, reaching $62.9 billion. Ethereum has shown a price recovery but received lukewarm investor sentiment, with only $1.5 million in inflows last week.

Sui has stood out among altcoins, with $11.7 million in inflows, surpassing Solana in weekly and year-to-date performance. Despite Solana facing $3.4 million in outflows over the past week, total YTD inflows for Sui exceed Solana’s at $84 million compared to $76 million.

The sharp rise in crypto prices and investment flows has been attributed by CoinShares to several macroeconomic trends converging, such as a global increase in the M2 money supply, stagflation risks in the US, and some US states adopting Bitcoin as a strategic reserve asset.

The correlation between Bitcoin's price and global M2 trends is being watched closely by investors, as Bitcoin positions itself as a macro-responsive asset. While there is growing consensus linking M2 expansion with crypto price movement, skepticism remains among some experts.

Amid US recession fears, there is a growing trend of boosting crypto allocations. Goldman Sachs has increased exposure to Bitcoin as a hedge against traditional finance instruments and dollar-denominated assets, aligning with the broader narrative of crypto as a hedge.

Standard Chartered highlighted Bitcoin's role as a hedge against Treasury market volatility and systemic financial risk, especially as US deficits rise and Treasury yields fluctuate. The momentum in crypto inflows and Bitcoin's expanding presence in institutional portfolios suggest that investors view digital assets as both a strategic investment and a hedge against market uncertainties.