Crypto Inflows Surge to $572M Following 401(k) Approval

Crypto inflows rebounded dramatically last week, reaching $572 million after a turbulent start that saw $1 billion in outflows.

The recovery came following the U.S. government’s landmark decision to permit digital assets in 401(k) retirement plans, triggering $1.57 billion in fresh investments during the week’s second half.

BREAKING: 🇺🇸 President Trump signs executive order to allow Bitcoin and crypto in 401(k)s. pic.twitter.com/NVXuhfzw3K

— Bitcoin Magazine (@BitcoinMagazine) August 7, 2025

The approval represents a significant shift in institutional adoption, providing millions of American workers access to cryptocurrency investments through their employer-sponsored retirement accounts.

This regulatory milestone helped offset earlier concerns stemming from weak U.S. payroll data that initially spooked investors.

Ethereum Dominates Weekly Investment Activity

Ethereum exchange-traded products led the charge with $268 million in weekly inflows, pushing year-to-date investments to a record-breaking $8.2 billion.

The second-largest cryptocurrency’s assets under management reached an all-time high of $32.6 billion, representing an 82% increase since January.

The surge reflects growing institutional confidence in Ethereum’s proof-of-stake network and its expanding ecosystem of decentralized applications.

Recent corporate treasury adoption has further amplified demand, with companies accumulating over $9 billion worth of ETH in recent months.

Bitcoin recovered momentum after two consecutive weeks of outflows, attracting $260 million in fresh investments.

The flagship cryptocurrency’s rebound coincided with renewed institutional interest and improved market sentiment following the retirement plan announcement.

Alternative cryptocurrencies also benefited from the positive momentum. Solana captured $21.8 million in inflows, while XRP and Near Protocol secured $18.4 million and $10.1 million, respectively. This demonstrated broadening investor appetite beyond major cryptocurrencies.

Regional Crypto Inflows Pattern Shows U.S. Leadership

Geographic distribution revealed a strong North American preference for digital assets. The United States recorded $608 million in inflows, while Canada added $16.5 million.

European markets remained cautious, with Germany, Sweden, and Switzerland collectively experiencing $54.3 million in outflows.

Trading volumes decreased 23% compared to the previous month, likely reflecting typical summer market patterns.

However, the 401(k) approval and sustained institutional demand suggest the current rally could extend beyond seasonal trends, particularly as more retirement funds gain cryptocurrency exposure.