🏦 401(k) Crypto Approval Drives $572M Inflows
•A new study shows $572 million flowed into crypto funds last week, influenced by economic news and new regulations. CoinShares’ head of research, James Butterfill, said market sentiment shifted sharply.
•At the start of the week, $1 billion left the market, likely due to worries after weak US job data. But later in the week, $1.57 billion poured in—possibly because the government approved digital assets for 401(k) retirement plans. This change seems to have boosted institutional interest in crypto investments.
•The US led with $608 million in inflows, followed by Canada with $16.5 million. Meanwhile, Germany, Sweden, and Switzerland saw $54.3 million in outflows.
•CoinShares also noted that summer trading slowdown caused a 23% drop in crypto ETP volumes compared to the previous month.
•Ethereum led the week with $268 million in inflows—its biggest so far—pushing year-to-date inflows to a record $8.2 billion. Its assets under management hit an all-time high of $32.6 billion, up 82% this year, thanks to growing interest in DeFi and staking.
•Bitcoin brought in $260 million after two weeks of outflows, while short-Bitcoin products lost $4 million, showing bearish sentiment has eased.
•With the massive size of the US 401(k) market, this rule change could spark strong new demand. But mixed results in Europe show investor sentiment is still divided. The future of these inflows will depend on market conditions, clear regulations, and Bitcoin and Ethereum’s performance.
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