TL;DR

$1.57B pours into crypto: Weekly inflows surged as Bitcoin, Ethereum, Solana, and XRP attracted capital, volumes improved, and institutions leaned risk-on despite recent profit-taking.
Bitcoin anchors, alts accelerate: BTC led share of flows while ETH, SOL, and XRP drew meaningful allocations, reflecting a barbell approach that pairs core exposure with selective higher-beta risk.
Eyes on confirmation signals: Inflation data, central bank guidance, and ETF flow persistence are the near-term catalysts, with on-chain activity needed to validate a sustained trend higher.

Digital asset investment products saw a dramatic turnaround last week, with net inflows hitting $572 million after a volatile start. According to CoinShares’ latest report, the shift came after the U.S. government approved digital assets for inclusion in 401(k) retirement plans, unlocking a late-week surge of $1.57 billion that erased early outflows tied to weak U.S. payroll data.

Ethereum steals the spotlight

Ethereum exchange-traded products led the rally, pulling in $268 million, the largest inflow of any asset class for the week. That pushed year-to-date inflows to a record $8.2 billion, while assets under management reached an all-time high of $32.6 billion, marking an 82% rise in 2025. The rebound underscores Ethereum’s status as the go-to altcoin for institutions seeking both scale and growth potential.

Bitcoin regains momentum

Bitcoin reversed two weeks of outflows to secure $260 million in inflows. Short-Bitcoin products, often used for hedging, saw $4 million in outflows, signaling renewed bullish sentiment. Traders appear to be rotating into core BTC exposure alongside selective altcoin positions, using the flagship crypto as the anchor in risk-on allocations.

Altcoins and regional breakdown

Among altcoins, Solana took in $21.8 million, XRP drew $18.4 million, and Near collected $10.1 million, reflecting a broader appetite for higher-beta plays when market confidence improves. Regionally, the U.S. dominated with $608 million in inflows, followed by Canada’s $16.5 million. Europe, however, remained a net seller, with Germany, Sweden, and Switzerland posting combined outflows of $54.3 million, a split that may mirror regulatory sentiment and macro outlooks.

What’s next for the market

While ETP trading volumes were 23% lower than the prior month due to seasonal factors, the sheer scale of inflows points to structural rather than speculative demand. The coming weeks will test whether 401(k) access acts as a lasting inflow driver or fades as a one-off catalyst. Key signals include ETF flow persistence, inflation data, and on-chain activity trends, especially in Ethereum and Solana, as institutions weigh whether this is the start of a sustained bull phase or just a summer rally.

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Filed under: News - @ August 11, 2025 1:30 pm