Crypto ETP recorded $572 million in inflows last week, signalling a strong rebound after the previous week brought an end to a record-breaking 15-week inflow streak totalling $27.8 billion.
The renewed investor appetite was reflected in both price action and fund flows, with Bitcoin (BTC) and Ether (ETH) rebounding sharply. ETH crossed the psychological $4,000 mark for the first time since December 2024, boosting sentiment across the market.
According to European digital asset manager CoinShares, the fresh inflows pushed year-to-date (YTD) totals to a historic high of $30.7 billion, while total assets under management (AUM) for crypto ETPs hit an all-time high of $226 billion.
US Retirement Plan Approval Sparks Investor Interest
CoinShares’ head of research, James Butterfill, attributed much of the recovery to the US government’s announcement last Thursday that it would allow digital assets to be included in 401(k) retirement plans.
The week began on a softer note, with $1 billion in outflows early on, likely triggered by concerns over slowing economic growth after weaker-than-expected US payroll data. However, sentiment shifted dramatically in the latter half of the week, with $1.57 billion pouring into crypto investment products following the 401(k) policy change.
Spot Bitcoin ETF inflows versus spot Ether ETF inflows. Source: SoSoValue
“This regulatory move has the potential to significantly broaden the investor base for digital assets,” Butterfill noted, suggesting the policy could prove to be a long-term growth driver for the sector.
Ether ETPs Lead with Record Inflows
Ether ETPs once again dominated the market, attracting the largest share of inflows at nearly $270 million for the week. This extends the asset’s recent winning streak after significant growth in July.
YTD inflows into ETH products have now reached a record $8.2 billion. Price appreciation has also been a major contributor, pushing Ether ETPs’ total AUM to $32.6 billion, an increase of 82% so far in 2025.
The momentum underscores Ether’s continued appeal to institutional and retail investors alike, buoyed by its central role in decentralised finance (DeFi) and the upcoming Ethereum network upgrades expected later this year.
Bitcoin and Altcoins Show Signs of Strength
Bitcoin ETPs staged a notable recovery, posting $265 million in inflows after two consecutive weeks of outflows. This suggests renewed confidence among investors, possibly influenced by BTC’s price resilience and its role as a perceived ‘safe haven’ within the crypto ecosystem.
Crypto ETP flows by asset as of Friday (in millions of US dollars). Source: CoinShares
Meanwhile, altcoin-focused ETPs also enjoyed solid gains. Products tracking Solana (SOL) attracted $21.6 million, XRP-linked products saw $18.4 million, and Near Protocol (NEAR) products brought in $10.1 million. The diversified interest reflects a broader willingness among investors to seek exposure beyond the two largest cryptocurrencies.
BlackRock Closes in on $100B Milestone
Among issuers, BlackRock’s iShares crypto ETFs led the inflows with $294 million, although this marked a significant drop of around 61% from the prior week’s $749 million. Even so, the firm’s crypto AUM closed the week at $98.9 billion, edging closer to the symbolic $100 billion milestone.
Crypto ETP flows by issuer as of last Friday (in millions of US dollars). Source: CoinShares
Grayscale Investments, the second-largest crypto ETP issuer, ended the week with $35.4 billion in AUM after securing $87 million in inflows. Bitwise Asset Management outpaced Grayscale in new capital, bringing in $95 million.
Not all issuers benefited from the rebound, Fidelity Investments’ crypto funds recorded the largest losses, with $55 million in outflows.
Momentum Builds Ahead of Key Events
The confluence of price recovery, record AUM, and regulatory tailwinds suggests a strengthening outlook for crypto ETPs. Ether’s leadership position remains a standout trend, and Bitcoin’s return to inflow territory highlights improving investor sentiment.
If the US retirement plan inclusion leads to sustained capital inflows, combined with ongoing network upgrades and institutional adoption, the second half of 2025 could see further expansion in both ETP assets and market capitalisation.
However, analysts caution that macroeconomic risks including inflation trends, central bank policy shifts, and potential regulatory challenges in other jurisdictions, could introduce volatility in the coming months.
For now, the rebound has injected renewed optimism into the digital asset investment space, positioning the sector for potential new highs in both capital inflows and asset valuations.
