Global cryptocurrency funds have shattered previous investment records, posting $5.95 billion in inflows last week as investors turned to digital assets amid fears of a U.S. government shutdown and ongoing economic uncertainty.
Record-Breaking Inflows Across Crypto Markets
According to data from CoinShares, crypto exchange-traded products (ETPs) recorded their largest-ever weekly inflows, surpassing the previous high of $4.4 billion set in mid-July — a 35% increase.
“We believe this was due to a delayed response to the FOMC interest rate cut, compounded by very weak employment data and concerns over U.S. government stability following the shutdown,” said James Butterfill, head of research at CoinShares.
The surge in inflows coincided with a bullish breakout in the broader crypto market, as Bitcoin (BTC) climbed to a new historic high above $125,000 over the weekend.
Bitcoin Leads With Record $3.6 Billion Inflows
Bitcoin dominated the market once again, attracting a record $3.6 billion in inflows, making up the bulk of last week’s investment activity.
Despite the regulatory slowdown, Grayscale Investments announced the launch of the first U.S.-listed spot crypto ETPs with staking, including the Grayscale Ethereum Mini Trust (ETH) and Grayscale Ethereum Trust (ETHE).
Despite BTC trading near all-time highs, investors showed no interest in short products, signaling strong confidence in continued upward momentum.
“Despite prices closing in on all-time highs, investors did not choose to buy short investment products,” Butterfill noted, emphasizing optimism in the current market cycle.
Ethereum and Solana Follow With Strong Demand
Ethereum (ETH) funds ranked second, pulling in $1.48 billion in inflows — pushing year-to-date totals to $13.7 billion, nearly three times higher than last year.
Solana (SOL) products came in third with $706.5 million, while XRP funds added $219.4 million, with both marking their own all-time records.
The historic momentum lifted total assets under management (AUM) across crypto investment products to $254.4 billion, the highest level ever recorded for the sector.
Regulatory Delays Amid Shutdown Fears
The surge came during a week of uncertainty surrounding the U.S. government shutdown, which temporarily halted operations at the Securities and Exchange Commission (SEC).
This has sparked concerns about potential delays in pending ETF approvals, including several highly anticipated crypto fund applications scheduled for October review.
Bloomberg’s ETF analyst Eric Balchunas compared the pause to a “rain delay,” suggesting the disruption may slow — but not stop — ongoing progress in the crypto ETF sector.
These funds now allow investors to earn staking rewards in addition to traditional market exposure — a move that analysts say could reshape crypto-based passive income opportunities.
The record-breaking inflows underline growing investor conviction that crypto assets are maturing into mainstream financial instruments, even amid policy uncertainty.
With Bitcoin leading the rally and institutional demand accelerating, digital asset markets appear more resilient and integrated than ever before — signaling a powerful new phase of crypto adoption.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.