Recent crypto inflows reached a staggering $3.3 billion, marking a new record as traditional market risks escalated. Year-to-date inflows now total $10.8 billion, with assets under management achieving an all-time high of $187.5 billion.

The US contributed $3.2 billion to last week's inflows, driven by domestic economic anxiety. Notable inflows also came from Germany, Hong Kong, and Australia, while Switzerland experienced outflows.

Bitcoin led with $2.9 billion in inflows, while Ethereum saw $326 million amid optimism about its Pectra upgrade. Short-Bitcoin products attracted $12.7 million.

Concerns over the US economy, Moody's downgrade warning, and spiking Treasury yields are pushing investors to diversify via digital assets. Analysts see cryptocurrencies like Bitcoin as a hedge against sovereign credit risk and monetary tightening.