Record $167B in Crypto Funds as Diversification Demand Surges

Crypto funds smashed records in May, amassing $167 billion in AUM as investors diversified away from traditional markets.

Morningstar reported $7.05 billion in net inflows—the strongest since December—while equity and gold funds bled $5.9 billion and $678 million, respectively.

Bitcoin’s 15% gain trounced major benchmarks, bolstered by spot ETF inflows and fading faith in US assets.

“With the dollar under pressure and bonds volatile, Bitcoin is becoming a go-to hedge,” said Aether Holdings’ CEO.

The data underscores a structural shift in how investors manage risk, with crypto playing an increasingly institutional role.