After a five-week period of market downturn, crypto investors are cautiously reentering the space, with Bitcoin (CRYPTO:BTC) leading the resurgence.

There's been a net inflow of $130 million into crypto investment products, largely driven by US investors showing renewed interest in Bitcoin amid Grayscale's decreased selling pressure.

Hong Kong also joined the trend, with Bitcoin ETFs attracting nearly $20 million.

However, Exchange Traded Products (ETPs) trading volume remains low, indicating lingering investor caution despite the positive sentiment towards Bitcoin.

Meanwhile, Ethereum (CRYPTO:ETH) continues to face outflows, attributed to regulatory uncertainty surrounding Ethereum ETFs and recent enforcement actions by the SEC, although proposed bills in Congress offer a glimpse of regulatory clarity on the horizon.