Bitcoin News Today: Trump's 401(k) Crypto Move Spur $572M Fund Inflows

Crypto fund inflows surged by $572 million in the week following President Donald Trump’s endorsement of allowing 401(k) retirement accounts to include investments in cryptocurrencies [1]. The regulatory change has been viewed as a pivotal development in mainstream adoption and institutional interest in digital assets. This shift triggered a reversal in investor sentiment after initial outflows of $1 billion at the start of the week [1].

Ethereum emerged as the top performer, drawing $268 million in inflows, while Bitcoin added $260 million in the same period [1]. Despite these gains, total weekly trading volumes declined by 23%, a common trend during the typically quieter summer market season. This indicates that while regulatory developments are stimulating short-term interest, broader market activity remains subdued.

Among fund providers, iShares ETFs led the pack with $294 million in weekly inflows and maintained a strong monthly performance of $292 million. The provider continues to dominate the market, holding $26.9 billion in year-to-date inflows and managing $98.9 billion in total assets under management [1]. In contrast, Grayscale Investments experienced continued outflows, with $87 million leaving during the week. This follows $99 million in monthly outflows and a cumulative $1.5 billion in year-to-date redemptions, despite managing $35.4 billion in assets [1].

The Fidelity Wise Origin Bitcoin Fund posted negative flows of $55 million weekly and $387 million monthly, yet it maintained positive year-to-date inflows of $316 million, with total assets of $25.5 billion [1]. Bitwise Funds Trust, on the other hand, recorded $95 million in weekly inflows, and ARK 21Shares saw $6 million in weekly outflows despite holding $5.3 billion in assets [1].

Bitcoin’s inflows reached $265 million for the week, marking a turnaround from weeks of outflows. However, its monthly flows remain negative at $571 million. Year-to-date, the asset has seen strong inflows of $20.5 billion, with $179.3 billion in total assets under management across all providers. Ethereum, the second-largest asset, attracted $269.8 million in weekly inflows, with total inflows hitting $8.2 billion year-to-date [1].

Altcoin funds displayed mixed performance. XRP funds gained $18.4 million for the week, and Solana attracted $21.6 million in the latest week as well. Smaller altcoin funds showed modest gains, with Litecoin and Cardano recording $0.1 million and $1.5 million in weekly inflows respectively [1].

Regionally, the United States dominated global crypto fund inflows, with $608 million in weekly inflows. While monthly flows turned negative at $361 million, year-to-date inflows remain robust at $29 billion, with U.S. funds managing $162.4 billion in assets. Canada recorded $16.5 million in weekly inflows, and European markets experienced outflows, led by Germany with $33.5 million in weekly outflows [1].

Sources:

[1] "Crypto funds gain $572M for the week as Trump approves 401(k) investments in crypto" https://coinmarketcap.com/community/articles/6899d40cf03a483a8427dca3/