Bitcoin News Today: Crypto ETPs See $572M Inflows Amid 401(k) Approval and Price Recovery

Last week marked a significant rebound in cryptocurrency exchange-traded product (ETP) flows, with global crypto ETPs recording $572 million in inflows during the week ending last Friday, according to CoinShares [1]. This comes after the prior week ended the longest recorded 15-week inflow streak, which totaled $27.8 billion. The surge in inflows coincided with a price recovery for both Bitcoin (BTC) and Ether (ETH), with ETH crossing the $4,000 psychological level for the first time since December 2024 [1].

Year-to-date (YTD) inflows into crypto ETPs have now reached a record $30.7 billion, pushing total assets under management (AUM) to $226 billion for the first time [1]. Ether ETPs led the inflow trend, attracting nearly $270 million in the week, with this bringing YTD inflows to a new high of $8.2 billion and AUM to $32.6 billion [1]. Bitcoin ETPs also showed strong recovery after two consecutive weeks of outflows, with inflows reaching $265 million [1]. Altcoin ETPs, including those tracking Solana (SOL), XRP (XRP), and Near (NEAR), also saw inflows of $21.6 million, $18.4 million, and $10.1 million respectively [1].

According to CoinShares’ head of research, James Butterfill, the resurgence in ETP flows was likely driven by the U.S. government’s announcement allowing digital assets in 401(k) retirement plans [1]. However, Butterfill noted that the week started with $1 billion in outflows, potentially linked to weak U.S. payroll data [1]. In the latter half of the week, inflows surged to $1.57 billion following the 401(k) approval [1].

The renewed inflows highlight growing institutional and retail interest in crypto ETPs as a vehicle for exposure to digital assets, particularly as the broader market shows signs of stabilization and upward momentum [1]. This shift reflects a broader acceptance of cryptocurrencies as legitimate investment assets rather than speculative instruments [1]. Despite regulatory and market volatility, the continued rise in ETP inflows suggests that investors are increasingly viewing crypto as part of their long-term portfolio strategy.

Bitcoin’s price recovered to nearly $122,000, just 1% below its all-time high, while Ether’s price momentum pushed above $4,300 [1]. The renewed confidence in both assets has led to significant increases in corporate holdings of Ethereum, with institutional holdings now reaching $13 billion [1].

The data underscores a growing mainstream acceptance of crypto, evidenced by Bitcoin’s brief market capitalization crossover past that of Mastercard [1]. Institutional investors, including MicroStrategy, have also demonstrated long-term commitment, with MicroStrategy’s Bitcoin accumulation strategy delivering a 2,600% return [1].

While the crypto market remains subject to unpredictable swings, the latest inflow figures indicate a clear uptick in demand for crypto ETPs. Institutional adoption appears to be gaining momentum, but future performance will depend on regulatory clarity and macroeconomic conditions. For now, the $572 million in inflows is a strong signal of renewed appetite for crypto-backed financial products [1].

Sources:

[1] CoinMarketCap, https://coinmarketcap.com/community/articles/6899b7ec169dd92d1050f09a/