Crypto and equity ETFs surge in April

What happened: In April, institutional investors poured $1.2 billion into crypto investment products, marking the fourth consecutive week of inflows. Bitcoin (CRYPTO: $BTC) led the rally, surging 13% and posting its best monthly performance in a year. Meanwhile, US equity ETFs attracted a record $7.5 billion in average daily inflows during April, more than doubling the March average.

Market impact: The risk-on sentiment drove inflows into both crypto and equity ETFs, signaling a renewed appetite for risk among institutional investors. This surge in demand pushed up prices, with Bitcoin and US equities registering significant gains. The crypto market cap surpassed $2 trillion, and the total assets under management in equity ETFs reached a record high.

What to watch next: Bitcoin's performance in May, as it attempts to maintain its April momentum and potentially challenge its all-time high. Additionally, monitor the continued inflows into crypto and equity ETFs, as well as the upcoming earnings season, which could provide further insights into the risk-on or risk-off sentiment among investors.