Crypto Funds Surge as Investors Seek Refuge from Fiat Debasement
The crypto market is heating up, with significant inflows into digital assets and renewed interest from investors. As traditional currencies face debasement, many are turning to cryptocurrencies and NFTs as potential safe havens. Here’s a breakdown of the latest developments.
Crypto Market Rebound
After a rocky February and March, United States cryptocurrency funds have bounced back, attracting over $7.5 billion in weekly inflows. This surge indicates a strong recovery in risk appetite across both traditional and cryptocurrency markets. Bitcoin (BTC) even broke its previous all-time high on May 21, following news of ceasefire negotiations between Russia and Ukraine.
Raoul Pal’s Bullish Stance on Crypto and NFTs
Raoul Pal, CEO of Global Macro Investor, is urging investors to increase their exposure to cryptocurrencies and non-fungible tokens (NFTs). Pal believes that these assets are undervalued and represent a hedge against the ongoing debasement of fiat currencies. He suggests that now is the time to invest in crypto, before prices potentially skyrocket.
Pal stated, “You don’t own enough crypto. When you do, you don’t own enough NFT’s, as art is upstream of wealth. Both will never be this cheap again.”
NFTs as a Store of Wealth
According to Nicolai Sondergaard, research analyst at Nansen, NFTs are becoming a vehicle for the wealthy for asset diversification. Beyond wealth creation, NFTs also benefit from strong communities.
US Crypto Funds See Massive Inflows
Crypto investment products in the U.S. have pulled in over $7.5 billion in 2025, signaling growing investor confidence in digital assets. Last week alone, these products attracted $785 million, marking the fifth consecutive week of positive inflows, according to a CoinShares report.
The United States led the way with $681 million in inflows, followed by Germany and Hong Kong.
Investor sentiment improved after the White House announced a 90-day pause on additional tariffs on May 12. Following this announcement, Coinbase experienced a significant Bitcoin outflow, with over $1 billion worth of BTC withdrawn, indicating strong institutional demand.
VanEck’s New Avalanche Ecosystem Fund
VanEck is set to launch the VanEck PurposeBuilt Fund in June, a private digital assets fund focused on Web3 projects built on the Avalanche blockchain. This fund will invest in liquid tokens and venture-backed projects across various sectors, including gaming, financial services, payments, and artificial intelligence. Idle capital will be allocated to Avalanche (AVAX) real-world asset (RWA) products.
Pranav Kanade, portfolio manager for DAAF, stated, “The next wave of value in crypto will come from real businesses, not more infrastructure.”
In Conclusion
The crypto market is showing signs of robust growth, driven by factors such as fiat currency debasement and increasing institutional interest. With major players like VanEck launching new funds and analysts like Raoul Pal advocating for greater crypto exposure, the future looks promising for digital assets. As reported by Cointelegraph, investors are seeking refuge in crypto and NFTs amid economic uncertainty.
Disclaimer
The information provided in this article is for informational purposes only and does not constitute financial advice. All news content is sourced from trusted platforms like Cointelegraph, Bitcoinist, and our own writers written with added value, editorial insights and reviews by our team. Always do your own research before making any investment decisions.
