Crypto ETF Inflows Hit $572M As Trump Opens $8.7 Trillion 401(k) Market To Crypto, Ethereum On A Tear

Crypto ETFs (exchange-traded funds) pulled in $572 million last week as US President Donald Trump opened the $8.7 trillion 401(k) pension market to digital assets, sending Ethereum on a tear.

“Early in the week, outflows reached $1 billion, which we believe were driven by growth concerns stemming from weak US payroll figures,” James Butterfill, Head of Research at CoinShares, wrote in a Monday report.

“In the latter half of the week, however, we saw $1.57 billion of inflows, likely spurred by the government’s announcement permitting digital assets in 401(k) retirement plans,” he added.

Most Of The Inflows Into Crypto ETFs Were From ETH Products

Ethereum-based products attracted $268 million in inflows, the highest amount of any asset, as the altcoin leader broke above $4K for the first time in eight months. These latest flows pushed the products’ year-to-date inflows to a new record of $8.2 billion as well. 

Those recent price gains have also pushed the total assets under management for ETH funds to an all-time high of $32.6 billion, marking an 82% increase so far this year. 

The ETH price has soared almost 17% in the past week and 45% in a month to hit $2,474 as of 10:25 a.m. EST.

Bitcoin products managed to rebound from 2 consecutive weeks of outflows last week as well. Investors added $260 million to the BTC products, helping the largest crypto by market cap break above the psychological $120K mark, data from CoinMarketCap shows. 

Meanwhile, investors pulled out $4 million from short Bitcoin products during the same period.

Investment products in the US and Canada recorded the highest inflows. Investors added $608 million to the US products, while products in Canada saw inflows of $16.5 million. 

Meanwhile, Europe remained bearish, with Germany, Sweden and Switzerland products suffering combined outflows of $54.3 million. 

Trump Opens $8.7 Trillion 401(k) Pension Market To Crypto

The soaring prices and inflows came the same week that US President Donald Trump signed an executive order to allow American 401(k) pension funds, an $8.7 trillion market, to invest in crypto and other alternative assets.

The order instructs the Labor Department and other federal agencies to redefine what would be considered a qualified asset under 401(k) rules. 

The White House expects the rules to be implemented in the next few months.