Crypto fund assets hit record $167 billion due to loss of confidence in US investments
In May 2025, cryptocurrency fund assets reached a record high due to growing demand from investors looking for alternatives to traditional US assets, Reuters reports.
According to the rating agency, 294 crypto funds attracted $7.05 billion in net investment last month, the highest figure since December 2024.
The total amount of assets under management of such funds reached a record $167 billion.
Nicholas Lin, CEO of fintech company Aether Holdings, said that Bitcoin is once again gaining popularity not only as a risk asset, but also as a hedging tool (protection against market fluctuations).
Over the past three months, Bitcoin has risen by over 15%, outperforming gold (up 13.3%) and the MSCI World stock index (+3.6%).
Analyst and founder of Coin Bureau Nick Pakri explains that the rise of Bitcoin was caused by the loss of confidence in traditional investments in the US.
"The dollar is weakening, bond yields are rising, stock markets are volatile. And Bitcoin seems to be holding strong," he noted.
Unlike cryptocurrency funds, in May $5.9 billion was withdrawn from global stock markets, and $678 million from gold funds. This indicates a general trend of changing the structure of investment portfolios.
- The US Securities and Exchange Commission (SEC) has voluntarily closed its civil case against Binance, the world's largest cryptocurrency exchange.