Crypto Investment Products in US Attract $7.5 Billion in 2025, Driven by 24% Tariff Cut

Generated by AI AgentCoin World
Monday, May 19, 2025 7:23 am ET2min read

Crypto investment products in the United States have attracted over $7.5 billion worth of investment in 2025, marking a significant surge in investor demand for digital assets. This influx of capital is indicative of a growing appetite among investors for cryptocurrencies, driven by a combination of factors including the potential for high returns and the diversification benefits that digital assets offer.

Last week, US-based crypto investment products saw $785 million in inflows, pushing the year-to-date total to over $7.5 billion. This marks the fifth consecutive week of net positive flows, following a period of nearly $7 billion in outflows during February and March. The United States accounted for the bulk of these inflows, with $681 million, followed by Germany at $86.3 million. This trend highlights the increasing acceptance of cryptocurrencies within the mainstream financial community and the maturing of the crypto industry.

Investor demand for risk assets such as cryptocurrencies staged a significant recovery after the White House announced a 90-day pause on additional tariffs on May 12. This announcement marked a 24% cut for import tariffs for both the US and China, which likely contributed to the renewed optimism in the crypto market. A day after the announcement, the

exchange saw 9,739 Bitcoin (BTC) worth more than $1 billion withdrawn from the exchange — the highest net outflow recorded in 2025. This significant movement of funds signals that institutional appetite for cryptocurrencies is accelerating.

Ethereum (ETH) was the top performer among crypto investment products, attracting $205 million in inflows last week. This brings its year-to-date total to more than $575 million. The report attributed the $200 million to renewed investor optimism following the successful Pectra upgrade and the appointment of new co-executive director Tomasz Stańczak. The Pectra upgrade, which went live on the mainnet on May 7, introduced improvements such as higher staking limits and account abstraction via EIP-7702. These enhancements have likely contributed to the increased investor confidence in Ethereum.

By contrast, Solana (SOL) investment products were the only major assets to see net outflows, with $890,000 withdrawn over the past week. This divergence in performance highlights the varying levels of investor sentiment towards different cryptocurrencies and the importance of staying informed about the latest developments in the crypto market.

Meanwhile, Ethereum co-founder Vitalik Buterin published a proposal to preserve trustless, censorship-resistant access to Ethereum. The plan aims to make Ethereum layer-1 scaling “more friendly” to users running local nodes for personal use. This proposal, if implemented, could drastically reduce the 1.3TB data burden by allowing nodes to sync only relevant information, opening the door to broader participation in the Ethereum network.

The surge in investment into US crypto funds, reaching $7.5 billion by 2025, underscores the growing acceptance and maturity of the crypto industry. As more investors recognize the long-term value and potential of digital currencies, it is likely that we will see further growth in crypto fund inflows. This trend is driven by ongoing innovation and the development of new investment opportunities within the digital asset space, reflecting the increasing confidence that investors have in the future of cryptocurrencies.

Comments



Add a public comment...
No comments

No comments yet