Crypto Inflows Hit Record $5.95B as Fed Eases and U.S. Shutdown Fuels Risk-On Revival
After a week of sharp outflows, the digital asset market roared back to life as investors funneled nearly $6 billion into crypto products—marking the largest weekly inflow ever recorded.
The rebound came amid a dovish Federal Reserve pivot, weak U.S. employment data, and mounting political uncertainty following the government shutdown. The combination of easing monetary policy and fiscal instability spurred a return to risk-on assets as confidence in fiat systems wavered.
Digital asset investment products recorded $5.95 billion in net inflows last week, following $812 million in outflows the week before. The turnaround reflects how rapidly market sentiment has shifted from caution to conviction.
Total assets under management (AuM) for crypto investment products surged to a record $254 billion, underscoring renewed institutional confidence in the asset class. The United States led the inflow surge with $5.0 billion, followed by Switzerland with $563 million and Germany with $312 million—both posting their highest weekly inflows on record.
Bitcoin dominated the rally, pulling in $3.55 billion in new investments as prices approached all-time highs. Investors notably avoided short-Bitcoin products, signaling strong belief that the uptrend has more room to run.
Ethereum also experienced a major rebound, attracting $1.48 billion in inflows, pushing its year-to-date total to $13.7 billion—nearly triple the entire 2024 figure. Solana continued to strengthen its position among institutional investors, seeing a record $706.5 million in inflows last week, while XRP followed with $219.4 million.
The dramatic two-week swing—from $812 million in outflows to nearly $6 billion in inflows—highlights how sensitive crypto markets remain to macroeconomic and political signals. As inflation fears ease and the Fed signals a more accommodative stance, digital assets appear to be reclaiming their role as both risk-on opportunities and macro hedges.
If this momentum continues, institutional capital may remain firmly anchored in crypto markets, particularly as investors seek yield and diversification in the face of volatile traditional markets.