What caused 1.57 billion USD to flow into crypto in just 3 days over the weekend?

After a pause in the continuous growth streak of 15 weeks, global cryptocurrency investment products have recorded a strong bounce back in the past trading week. According to a report from digital asset management company CoinShares, capital inflows have returned to the market with a total value of 572 million dollars, reflecting a revival in investor sentiment following a brief adjustment period.

Optimistic signals after the adjustment week

The total capital inflow recorded into crypto ETP products has increased again amid the bounce back of Bitcoin (BTC) and Ether (ETH) prices. Notably, ETH has surpassed the psychological threshold of $4,000 for the first time since December 2024, while BTC is trading around $121,000. This development comes just a week after the market ended a record 15-week streak of capital inflow with a total value of $27.8 billion.

Weekly cryptocurrency inflow | Source: CoinSharesSince the beginning of the year, the inflow into crypto ETPs has reached 30.7 billion dollars, setting a new record high. At the same time, the total assets under management (AUM) of these products have also first exceeded 226 billion dollars, reflecting an impressive price increase and growing confidence from institutional investors.

Impact from the 401(k) retirement policy

According to Mr. James Butterfill, Director of Research at CoinShares, the bounce back of capital flows is likely stemming from the landmark decision of the U.S. government, allowing 401(k) retirement plans to invest in digital assets. This policy was announced last Thursday, opening the door for long-term capital flows from pension funds.

The flow of money into spot Bitcoin ETFs compared to the flow into spot Ether ETFs | Source: SoSoValueAlthough the beginning of last week recorded capital outflows of about 1 billion dollars, mainly due to concerns about slowing economic growth after weak U.S. payroll reports, the latter half of the week saw a strong reversal of capital flows, with over 1.57 billion dollars flowing into the market immediately after the policy announcement 401(k).

Ether ETP surges strongly

While Bitcoin has seen a significant bounce back, Ether ETP has been the real highlight over the past week. With inflows of nearly 270 million dollars, ETH-tracking ETP products have led the market, bringing the total investment into Ether this year to 8.2 billion dollars — the highest level on record.

The recent price growth of ETH has also helped the total AUM of Ether ETP reach $32.6 billion, corresponding to an 82% increase since the beginning of the year. This reflects the growing expectations of investors regarding the future of the Ethereum network, especially after the market began to re-evaluate the possibility of approving spot Ether ETFs in the US.

Capital inflows into crypto ETPs by asset as of Friday (measured in millions of US dollars) | Source: CoinSharesNot only Ethereum, but investment products tracking Bitcoin have also reversed sharply, recording capital inflows of up to 265 million USD – officially ending a two-week streak of outflows. This positive trend is likely driven by expectations that interest rates will remain stable, along with growing confidence in Bitcoin's role as a long-term store of value.

Notably, some large-cap altcoins also recorded new investment inflows, indicating a positive shift in risk appetite from investors. Among them, Solana (SOL) led with an inflow of up to 21.6 million USD, followed by XRP with 18.4 million USD and NEAR Protocol (NEAR) attracting 10.1 million USD. This trend shows that investors are gradually expanding their interest beyond Bitcoin and Ethereum, towards digital assets with high growth potential in the new cycle.

These figures indicate that investors are diversifying their portfolios instead of solely focusing on BTC and ETH, reflecting long-term confidence in the multi-chain ecosystem as well as new generation blockchains.

The inflow of capital back into the cryptocurrency ETP market after a week of adjustment is not only a positive short-term sign but also reflects the structural confidence being strengthened from institutional investors. With supporting factors such as a bounce back in prices, more open legal policies, and diversification of investment assets, the crypto ETP market is gradually becoming a strategic capital allocation channel in the eyes of long-term investors.

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