🏦 401(k) Crypto Approval Fuels $572M Fund Inflows

Digital asset funds saw $572 million in net inflows last week, driven by a sharp shift in sentiment following fresh macroeconomic and regulatory developments, according to CoinShares.

Head of research James Butterfill noted that the week began with $1 billion in outflows, likely triggered by weaker-than-expected US payroll data and growth concerns. But momentum flipped midweek, with $1.57 billion flowing in after the US government greenlit the inclusion of digital assets in 401(k) retirement plans. This legislative move appears to have bolstered institutional appetite for crypto-linked financial products.

Geographically, inflows were uneven. The US led with $608 million, followed by Canada’s $16.5 million, while Germany, Sweden, and Switzerland collectively saw $54.3 million in outflows. CoinShares also reported that trading volumes for digital asset ETPs fell 23% from the prior month, reflecting the typically quieter summer period.

Ethereum products stole the spotlight with $268 million in inflows, setting a record $8.2 billion year-to-date and pushing assets under management to an all-time high of $32.6 billion—up 82% since January. Network growth in DeFi and staking continues to attract investor interest.

Bitcoin funds recorded $260 million in inflows after two weeks of losses, while short-Bitcoin products shed $4 million, signaling waning bearish sentiment.

Given the scale of the US 401(k) market, analysts say the policy shift could unlock significant new demand. However, mixed flows in Europe highlight that sentiment remains divided, with future trends hinging on macroeconomic stability, regulatory clarity, and the performance of Bitcoin and Ethereum.

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