Bitcoin News Today: Crypto ETFs Surge $572M as U.S. Opens 401(k) Market to Digital Assets

Crypto ETF inflows surged to $572 million last week, driven by the U.S. government’s recent move to allow digital assets in 401(k) retirement plans, marking a pivotal development in the crypto market [1]. The decision, signed by President Donald Trump, opens the $8.7 trillion 401(k) market to cryptocurrencies and other alternative assets, signaling a major shift in institutional and retail investment strategies. The Labor Department and other federal agencies are now tasked with redefining what qualifies as an eligible asset under 401(k) rules, with implementation expected within months [1].

Ethereum-based products led the inflow trend, drawing $268 million in new capital, the highest among all crypto assets tracked. This brought the total year-to-date inflows for ETH products to $8.2 billion and pushed their assets under management to an all-time high of $32.6 billion, reflecting an 82% increase so far this year [1]. The price of Ethereum has risen nearly 17% in the past week and 45% in the last 30 days, reaching $2,474 as of 10:25 a.m. EST on August 11, 2025 [1].

Bitcoin also saw a rebound, with investors adding $260 million to BTC products after two consecutive weeks of outflows. This helped Bitcoin push above the psychological $120,000 level [1]. Short Bitcoin products, however, saw $4 million in outflows during the same period [1].

Investor flows were concentrated in the U.S. and Canada, with U.S. products attracting $608 million and Canadian products seeing $16.5 million in inflows [1]. Conversely, European markets remained bearish, with Germany, Sweden, and Switzerland collectively experiencing $54.3 million in outflows [1].

According to James Butterfill, Head of Research at CoinShares, the initial outflows of $1 billion at the start of the week were likely driven by concerns over weak U.S. payroll figures. However, the midweek announcement from the government triggered a reversal, leading to $1.57 billion in inflows as investors responded positively to the new regulatory clarity [1].

The development follows broader optimism in the digital asset space, with major inflows across multiple crypto ETPs and ETFs, totaling $1.57 billion for the week [1]. This suggests a growing institutional embrace of crypto as a legitimate asset class, particularly as traditional financial regulations evolve to accommodate digital investments.

The move to integrate crypto into 401(k) plans is expected to significantly expand the investor base for digital assets, potentially increasing demand and stabilizing the market over the long term. With the Labor Department beginning the process of implementing the new rules, the U.S. crypto market may enter a new phase of mainstream adoption and institutional participation.

Source:

[1] Insidebitcoins.com

https://insidebitcoins.com/news/crypto-etf-inflows-hit-572m-as-trump-opens-8-7-trillion-401k-market-to-crypto-ethereum-on-a-tear