Crypto ETPs Record $572 Million Weekly Inflows as Bitcoin and Ether Rally
Global cryptocurrency exchange-traded products recorded $572 million in inflows during the trading week ending Friday. According to Cointelegraph, European crypto asset manager CoinShares reported the data on Monday. The inflows came as Bitcoin and Ether prices recovered last week. Ether reached $4,000 for the first time since December 2024.
The weekly gains pushed year-to-date inflows to a historic high of $30.7 billion. Total assets under management reached $226 billion for the first time. The previous week had ended a record 15-week inflow streak totaling $27.8 billion.
CoinShares head of research James Butterfill said early-week outflows reached $1 billion. He attributed this to growth concerns from weak US payroll figures. However, the latter half of the week saw $1.57 billion in inflows.
Government Policy Drives Investment Surge
The week's recovery coincided with significant US government policy changes affecting retirement investments. President Donald Trump signed an executive order on Thursday allowing digital assets in 401(k) retirement plans. CoinDesk reported this move opened retirement accounts to cryptocurrency investments.
Butterfill linked the late-week inflow surge directly to this announcement. The policy reversal removed previous Biden administration guidance that discouraged crypto in retirement accounts. The Labor Department had previously advised plan fiduciaries to exercise "extreme care" before adding cryptocurrency options.
The timing proved critical for market sentiment. More than 90 million Americans participate in employer-sponsored retirement plans. This policy change potentially provides access to trillions in retirement assets for cryptocurrency investment products.
We previously covered how major asset managers have been positioning for broader crypto ETF adoption. As we reported during the early Bitcoin ETF approval process, institutional demand has been a primary driver of crypto investment product growth.
Market Leadership Shifts to Ether Products
Ether ETPs dominated last week's inflows with nearly $270 billion in new investments. This performance continued Ether's July momentum and pushed year-to-date inflows to $8.2 billion. Total Ether ETP assets under management reached an all-time high of $32.6 billion. We recently reported that 15 US states are moving forward with plans for Bitcoin reserves, with Oklahoma, New Hampshire, and Pennsylvania proposing to allocate up to 10% of public funds for Bitcoin purchases.
Bitcoin ETPs recovered from two consecutive weeks of outflows with $265 million in new investments. Altcoin products also participated in the recovery. Solana, XRP, and Near ETPs recorded inflows of $21.6 million, $18.4 million, and $10.1 million respectively.
BlackRock maintained its position as the leading crypto ETP issuer. The company's iShares crypto ETFs attracted $294 million in inflows, bringing total assets to $98.9 billion. This figure places BlackRock near the $100 billion milestone in crypto assets under management.
The policy changes could reshape crypto investment product distribution channels. Traditional financial advisors may now consider crypto allocations for client retirement accounts. This represents a significant expansion beyond current institutional and high-net-worth investor bases. However, implementation timelines remain uncertain as employers must evaluate fiduciary responsibilities under existing retirement plan frameworks.
