Digital asset investment products swung back into positive territory last week, ending with US$572M in net inflows after a volatile start. Early in the week, weak U.S. payroll data sparked concerns over slowing economic growth, triggering US$1B in outflows. However, sentiment reversed sharply following the U.S. government’s announcement authorizing cryptocurrencies in 401(k) retirement plans. This policy shift spurred a US$1.57B inflow in the latter half of the week, offsetting earlier losses.

The U.S. led globally with US$608M in inflows, followed by Canada with US$16.5M, while European markets remained cautious.

Ethereum investment products outperformed all other assets, attracting US$268M in inflows — the largest of any single digital asset last week. These gains propelled year-to-date inflows to a record US$8.2B and pushed total assets under management (AUM) to an all-time high of US$32.6B, marking an 82% increase in 2025. The surge reflects growing institutional confidence and strong price appreciation in recent weeks.

After two consecutive weeks of outflows, Bitcoin recorded US$260M in inflows. This renewed demand came as short-Bitcoin products saw US$4M in outflows, indicating a shift in investor positioning toward a more bullish stance. Bitcoin’s rebound coincided with expectations that U.S. monetary policy could turn more supportive for risk assets in the coming months.

Several altcoins also attracted notable inflows:

• Solana (SOL): US$21.8M
• XRP: US$18.4M
• Near Protocol (NEAR): US$10.1M

This broad-based participation highlights continued diversification among crypto investors, even as Ethereum and Bitcoin dominate total inflows.

The U.S. government’s move to integrate digital assets into 401(k) retirement plans marks a significant milestone for mainstream crypto adoption, potentially unlocking new demand from long-term retirement savers. Combined with Ethereum’s record-breaking performance and Bitcoin’s rebound, the market enters August with a more constructive outlook despite lingering macroeconomic uncertainties.

While volumes remain seasonally muted, the sharp turnaround in flows underscores crypto’s sensitivity to regulatory developments and its growing role within diversified investment strategies.

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