Crypto Funds Hit $167B AUM as Investors Seek Alternatives

Reading Time: < 1 minute

Institutional and retail investors are increasingly allocating to crypto funds, with assets under management reaching a record $167 billion in May.

Morningstar data shows $7.05 billion in net inflows—the highest since December—as digital assets gain traction for hedging and diversification.

Bitcoin’s 15% three-month rally has outpaced traditional assets, reinforcing its role beyond speculative trading. Nicolas Lin, CEO of Aether Holdings, notes growing adoption as a hedge, while Coin Bureau’s Nic Puckrin cites declining confidence in US markets as a key driver.

The shift comes as equity funds bleed $5.9 billion and gold funds see their first outflows in over a year.