news 
$572 Million Returns to Crypto as 401(k) Approval Triggers US-Led Buying
The cryptocurrency market has just witnessed a significant influx of capital following the US government’s decision to allow cryptocurrencies in 401(k) retirement plans. According to recent data, digital asset investment products saw an astonishing $578 million in net inflows last week.
It appears that the policy change sparked a surge in buying activity from institutional investors and individual investors alike. This sudden surge in interest has been largely driven by U.S.-listed crypto products. It is worth noting that European markets have seen significant outflows, suggesting that the majority of this influx was entirely US-driven.
Interestingly enough, Ethereum ETPs led the charge, with over $268 million being invested last week alone. This marks a stark contrast to Bitcoin’s relatively modest inflows of just under $265 million. It is suggested that the 401(k) approval may have been responsible for some institutional investors directing their funds towards Ethereum due to its role in decentralized finance and staking, as well as interest in ETH-based ETFs.
Another notable trend observed was the sharp rise in interest towards XRP, with inflows totaling $18.4 million last week. Year-to-date inflows have reached a staggering $1.112 billion.
On the other hand, SUI Crypto moved in the opposite direction, posting outflows of $3 million. This sudden shift may be attributed to some investors rotating their funds towards more established altcoins with higher liquidity and taking profits from earlier August gains.
It is worth noting that flows by provider confirm how concentrated last week’s cryptocurrency inflows were in U.S.-listed products. Notably, iShares ETFs/USA took in a massive $294 million, Grayscale products added $87 million, while Fidelity’s Wise Origin Bitcoin Fund saw outflows of $55 million.
While the market may still be cautious amid the ongoing summer trading activity slowdown, this surge in buying activity is undoubtedly an encouraging sign for investors.
Source: coinchapter.com
