Crypto Funds Gain $572M Inflows After U.S. Approves 401(k)
Crypto funds recorded a net $572 million inflow last week after the U.S. government moved to allow digital assets in 401(k) retirement plans. The shift reversed two weeks of outflows and followed an early-week $1 billion dip triggered by weak U.S. payroll data. U.S.-listed crypto funds led the surge with $608 million of net inflows, while European funds saw $54.3 million withdrawn. Seasonal summer trading pushed exchange-traded product volumes down by 23% month-on-month.
Ethereum ETPs topped asset flows with $268 million, lifting their year-to-date inflows to $8.2 billion and AUM to $32.6 billion. Bitcoin funds saw $260 million of inflows. Among altcoins, Solana added $21.8 million, XRP $18.4 million, and NEAR $10.1 million, despite minor outflows in SUI. Major providers such as iShares and Grayscale benefited, whereas Fidelity’s Wise Origin Bitcoin Fund experienced $55 million in outflows.
Analysts believe the 401(k) approval opens a new regulated channel for institutional demand. Increased access to digital assets through retirement accounts could boost short-term trading activity, enhance market stability over the long term, and support a bullish outlook for crypto funds and major tokens.
Bullish
The U.S. approval of digital assets in 401(k) plans has driven significant inflows into crypto funds, signaling renewed institutional confidence. The immediate reversal of prior outflows and strong demand for Ethereum and Bitcoin ETPs point to positive trader sentiment in the short term. Over the long term, regulated access through retirement accounts is likely to attract fresh capital, reduce volatility, and enhance market stability. Together, these factors support a bullish outlook for major cryptocurrencies and reinforce sustained growth in crypto funds.