401(k) Approval Boosts Ethereum and Bitcoin Inflows to $572M
Darius Baruo Aug 11, 2025 10:02
Recent 401(k) crypto approval has led to significant inflows into digital assets, with Ethereum and Bitcoin seeing the largest gains, according to CoinShares.
Significant Inflows Following 401(k) Crypto Approval
In the latest market update, CoinShares reports a notable shift in digital asset fund flows, driven by the U.S. government's decision to allow cryptocurrencies in 401(k) retirement plans. This approval has sparked a substantial inflow of US$572 million, reversing earlier outflows of US$1 billion that resulted from concerns over weak U.S. payroll data.
Ethereum and Bitcoin Lead the Rebound
Ethereum Exchange-Traded Products (ETPs) emerged as the frontrunners, with an impressive US$268 million in inflows. This surge has propelled year-to-date inflows to a record US$8.2 billion, and assets under management (AUM) have reached an all-time high of US$32.6 billion, marking an 82% increase for 2025. Bitcoin (BTC), after experiencing two consecutive weeks of outflows, rebounded with US$260 million in inflows.
Altcoins and Regional Trends
Several altcoins also witnessed positive momentum, with Solana, XRP, and Near attracting inflows of US$21.8 million, US$18.4 million, and US$10.1 million, respectively. Regionally, the U.S. and Canada saw inflows of US$608 million and US$16.5 million, while European markets, particularly Germany, Sweden, and Switzerland, experienced outflows totaling US$54.3 million.
Market Context and Future Outlook
The overall volume of digital asset ETPs was 23% lower than the previous month, likely due to seasonal quietness. Despite this, the recent inflow surge underscores the growing institutional interest in cryptocurrencies, particularly as traditional investment vehicles begin incorporating digital assets. This shift could pave the way for further integration of cryptocurrencies into mainstream financial products.
For additional insights and detailed analysis, visit CoinShares' official report.
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