According to The Kobeissi Letter, foreign investors have injected approximately $1.5 billion into US equity funds over the past month, marking the highest net inflow since February 2025. This reversal follows a significant outflow of $5 billion at the start of April 2025, which was the largest in at least five years (source: The Kobeissi Letter, Twitter, May 14, 2025). This renewed capital inflow signals increased global confidence in US equities, which historically correlates with reduced volatility in the crypto market as institutional investors rebalance portfolios. Traders should watch for potential shifts in BTC and ETH price action, as US stock market stability often leads to decreased crypto hedging flows.

According to The Kobeissi Letter, since 2007, US equity, corporate bond, and Treasury funds have attracted $3.5 trillion in net inflows, with US equity funds accounting for $1.2 trillion or 34% of the total. Notably, the pace of inflows accelerated post-2020 pandemic (source: The Kobeissi Letter, May 9, 2025). For crypto traders, this trend highlights persistent risk-on sentiment in traditional markets, which can reduce short-term inflows into digital assets like Bitcoin and Ethereum. However, any shift in risk appetite or outflows from US equities could catalyze increased capital allocation into the cryptocurrency sector, making fund flow monitoring crucial for crypto market timing.