- The US 401(k) crypto approval spurred $1.57B in late-week inflows, reversing $1B early-week outflows caused by weak US payroll data.
- Ethereum products saw $268M inflows, pushing 2025 total to $8.2B and assets under management to a record $32.6B, up 82% this year.
- Bitcoin rebounded with $260M inflows, while Solana, XRP, and Near posted $21.8M, $18.4M, and $10.1M, respectively, across regional markets.
The U.S. government’s decision to allow cryptocurrency allocations in 401(k) retirement plans triggered $1.57 billion in inflows to digital asset products late last week. The surge reversed earlier losses, ending the week with $572 million in net inflows.
Executive Order Fuels Capital Inflows
Early in the week, digital asset investment products faced $1 billion in outflows, largely driven by concerns over weak U.S. payroll data. This negative sentiment led many investors to scale back exposure to crypto-linked products.
The trajectory of the market changed when President Donald Trump signed an executive order instructing the U.S. Labor Department to study and modify restrictions on alternative assets in defined-contribution plans which included crypto, private equity, and real estate.
According to asset manager CoinShares, following the announcement, inflows into digital asset products totaled $1.57 billion during the latter half of the week. Trading volumes were 23% lower than the previous month due to seasonal summer activity, but the policy change encouraged renewed investment interest.
Ethereum Products Set New Records
Ethereum investment products led the market, attracting $268 million in inflows. This raised year-to-date inflows for Ethereum ETPs to an all-time high of $8.2 billion.
Assets in Ethereum-based products grew to a record $32.6 billion, which is an 82% increase from the start of 2025. These numbers demonstrate positive institutional positioning in Ethereum.
The combination of the executive order and Ethereum’s performance reinforced its standing as a preferred allocation among institutional and retail investors seeking diversified crypto exposure.
Bitcoin and Altcoins Join the Rally
Bitcoin reversed two consecutive weeks of outflows, bringing in $260 million in new investments. Investor sentiment shifted positively, with short Bitcoin products seeing $4 million in outflows, indicating reduced bearish positioning.
Altcoins also recorded notable inflows. Solana was up by $21.8 million, XRP added $18.4 million and Near took $10.1 million. This demonstrates broader investor participation across the digital asset sector.
Regionally, the United States accounted for $608 million in inflows, with Canada adding $16.5 million. European markets moved in the opposite direction, with Germany, Sweden, and Switzerland recording combined outflows of $54.3 million.
