Morgan Stanley’s recently launched Bitcoin exchange-traded fund raised nearly $62 million in its first week of trading — a debut that landed in the middle of the strongest week for crypto investment products in three months.
Macroeconomic changes fuel the comeback
This broader rebound has been fueled by the entry of several companies into the market. Crypto funds overall attracted $1.1 billion in net inflows for the week ending April 11, according to asset manager CoinShares.
The turnaround came after five straight weeks of capital outflows that drained about $4 billion from the market and shook investor confidence heading into April.
James Butterfill, head of research at CoinShares, highlighted two specific triggers: early ceasefire signals from Iran and lower-than-expected U.S. inflation. Both helped ease the tensions that had kept institutional money on the sidelines.
American investors led the charge. According to CoinShares data, U.S. buyers accounted for $1.06 billion, or about 95% of total global flows for the week. U.S. spot Bitcoin ETFs took in the largest share, bringing in $833 million, according to data from Farside Investors.
Bitcoin and Ethereum both attract new money
Global Bitcoin funds attracted $871 million. Ethereum, which had seen outflows for three consecutive weeks previously, saw $196.5 million inflow. Weekly trading volumes climbed 13% to $21 billion, although that figure remains well below the annual average of $31 billion, reports show.
Positioning among large investors tells an interesting story. At the same time that institutions were buying Bitcoin and Ethereum, Bitcoin short products – funds that profit when the price of Bitcoin falls – saw inflows of $20 million.
This is the highest weekly total for these products since November 2024. Money was flowing in, but some of it was being used as a safety net.
$XRP funds, which had briefly surpassed Bitcoin the previous week with nearly $120 million in inflows, cooled significantly. Reports show $XRP Investment products brought in just over $19 million during the same period.
Morgan Stanley Goes Deeper Into Crypto
Beyond the weekly numbers, Morgan Stanley’s growing footprint in the sector has drawn attention. The bank has already filed for Ethereum and Solana ETFs following the launch of its Bitcoin fund.
According to reports, Amy Oldenburg, director of Morgan Stanley, said the company also plans to roll out crypto services, including a tokenized money market fund and tax collection options for clients.
Year-to-date, Bitcoin ETF inflows have reached just under $2 billion, or about 82% of all crypto ETP inflows recorded in 2026. Ethereum remains in the red for the year, sitting at $130 million in cumulative outflows despite last week’s rally.
Total assets under management in crypto investment products have returned to levels not seen since early February.
Featured image from Pexels, chart from TradingView