🚀 Crypto ETPs Surge Back: $1.57B Floods In After 401(k) Green Light, ETH Smashes $8.2B YTD Record

Wall Street's crypto love affair reignites—with retirement accounts now joining the party.

The 401(k) effect: Institutional money storms back into crypto ETPs as regulators finally stop pretending digital assets don’t exist. $1.57 billion in fresh inflows signals renewed confidence—or maybe just FOMO after a 12-month regulatory stalemate.

Ethereum’s silent domination: While Bitcoin maximalists were busy arguing on Twitter, ETH quietly racked up $8.2 billion in year-to-date inflows. Smart contracts: still smarter than your average hedge fund manager.

The fine print: Yes, these numbers look juicy—but remember, this is the same industry that called Celsius 'low-risk' in 2022. Tread carefully, yield chasers.

Sentiment shifted sharply after the U.S. government announced plans to permit digital assets in 401(k) retirement accounts, sparking $1.57 billion of inflows in the latter half of the week.

Volumes in crypto ETPs were 23% lower than the previous month, reflecting the seasonal slowdown over the summer. Regionally, the U.S. led with $608 million in inflows, while Canada added $16.5 million. Europe remained cautious, with Germany, Sweden, and Switzerland recording combined outflows of $54.3 million.

Ethereum Hits Record $8.2B YTD Inflows

Ethereum investment products saw the strongest investor interest, attracting $268 million in inflows — the highest of any asset last week. This pushed year-to-date inflows to a record $8.2 billion and assets under management (AUM) to an all-time high of $32.6 billion, an 82% rise in 2025, according to CoinShares.

Provider data shows iShares ETFs USA was the largest beneficiary overall, pulling in $294 million for the week and $26.86 billion year-to-date.

Grayscale Investments saw $87 million in inflows despite $1.45 billion in YTD outflows, while Bitwise Funds Trust added $95 million. By contrast, Fidelity Wise Origin Bitcoin Fund recorded $55 million in weekly outflows and $316 million in YTD inflows.

Bitcoin Rebounds as Short Positions Unwind

Bitcoin regained momentum after two weeks of losses, registering $260 million in inflows. Short bitcoin products saw $4 million in outflows, signalling reduced bearish positioning among investors.

Among providers, ProShares ETFs USA recorded $35 million in weekly inflows, while CoinShares XBT Provider AB saw $16 million in outflows, extending its year-to-date withdrawals to $414 million. The “Other” category, which includes smaller or niche issuers, contributed a notable $151 million in inflows for the week.

Altcoins See Targeted Gains

Outside of Bitcoin and Ethereum, selected altcoins also attracted capital. solana products drew $21.8 million in inflows, XRP took in $18.4 million, and Near added $10.1 million. These moves suggest continued interest in layer-1 and cross-border payment solutions, even as overall market volumes remain subdued.

The latest data highlights a market still sensitive to macroeconomic signals but capable of rapid sentiment shifts when regulatory clarity improves. As Butterfill notes, the approval of digital assets for 401(k) plans could be a structural driver for inflows in the months ahead, particularly if traditional asset managers expand their offerings.