Digital asset investment products saw US$578 million in net inflows last week. The week began with US$1 billion in outflows after weaker-than-expected U.S. payroll data, which often reduces investor appetite for risk assets like cryptocurrencies. In the second half of the week, inflows surged to US$1.57 billion after the U.S. government allowed cryptocurrencies in 401(k) retirement plans. This policy change opened a regulated path for retirement funds to invest in crypto, which is likely why U.S.-listed products dominated the week’s flows.
The United States alone saw US$608 million in inflows, while Europe recorded combined outflows of US$54.3 million. Lower volumes compared to last month — down 23% — suggest summer trading activity remains slower despite the policy-driven boost.
Ethereum (ETH) ETPs brought in US$268.9 million, more than any other asset last week. Year-to-date inflows now total US$8.227 billion, already higher than the US$7.3 billion recorded for all of 2024. Assets under management have reached US$32.6 billion, up 82% this year.
ETH’s inflows were slightly higher than Bitcoin’s US$265 million, which is unusual, given Bitcoin’s larger market size. This suggests that part of the new institutional money from the 401(k) announcement may have been allocated toward Ethereum. This is likely due to its role in decentralized finance and staking, as well as interest in ETH-based ETFs. ETH’s price also rose during the week, which likely added to inflow momentum.
XRP saw US$18.4 million in inflows last week, higher than its average weekly inflows of around US$12 million over the past three months. Month-to-date inflows stand at US$22.1 million, and year-to-date totals are US$1.112 billion.
SUI recorded US$3.0 million in outflows last week, erasing earlier August gains. Month-to-date inflows are now negative at -US$3.0 million, while year-to-date totals remain at US$123 million.
The reversal contrasts with Solana’s US$21.6 million and Near’s US$10.1 million inflows. One reason could be investor rotation toward more established altcoins with higher liquidity. SUI’s price traded sideways during the week, which may have prompted some profit-taking.
Flows by provider confirm how concentrated last week’s cryptocurrency inflows were in U.S. products. iShares ETFs/USA took in US$294 million, nearly half of all weekly inflows. Grayscale products added US$87 million, while Fidelity’s Wise Origin Bitcoin Fund saw US$55 million in outflows.
The dominance of U.S.-listed crypto products is consistent with the timing of the 401(k) policy change, which applies to U.S. retirement accounts. In contrast, European markets saw net outflows, suggesting the buying was almost entirely U.S.-driven.
