Crypto ETPs Smash Records with $5.95B in Fresh Inflows

These record numbers were boosted by macroeconomic uncertainty in the US and growing expectations of monetary easing. Bitcoin led the surge after hitting a new all-time high above $125,000, while Ethereum, Solana, and XRP also saw major inflows. Meanwhile, Japan’s election of Sanae Takaichi as its first female prime minister added even more momentum to the sector. Her pro-growth stance, support for innovation, and openness toward digital assets lifted market sentiment, and could position Japan to become a key driver in the next phase of global crypto adoption.

Crypto Funds See Record Inflows

Last week, cryptocurrency investment products experienced their strongest week on record. Total inflows soared to $5.95 billion as optimism swept through digital asset markets after renewed macroeconomic uncertainty in the United States. 

The surge coincided with a US government shutdown and weak employment data, which investors interpreted as potential catalysts for sustained liquidity and looser monetary conditions. According to digital asset manager CoinShares, the influx was the largest ever recorded for crypto exchange-traded products (ETPs), and surpassed the previous $4.4 billion weekly record that was set in mid-July by an impressive 35%.

Weekly Crypto Asset Flows (Source: CoinShares)

CoinShares’ head of research, James Butterfill, attributed the record-breaking inflows to a delayed reaction to the Federal Open Market Committee’s recent interest rate cut, combined with growing investor unease about government stability following the shutdown. This combination of macroeconomic triggers and renewed institutional demand helped fuel a rally across the cryptocurrency market, and helped push Bitcoin to a new all-time high above $125,000 over the weekend.

Bitcoin was the clear standout among crypto ETPs by attracting a record $3.6 billion in inflows as investors showed a strong preference for long exposure to the market leader. Ethereum followed with $1.48 billion in inflows, bringing its year-to-date total to $13.7 billion — nearly triple the figure that was recorded over the same period last year. 

Flows by asset (Source: CoinShares)

Solana-based products also performed exceptionally well after drawing $706.5 million and placing third among all digital assets. XRP funds added another $219.4 million, which made it one of the token’s best weeks on record as well.

The extraordinary inflows pushed total assets under management (AUM) in crypto investment funds to a new all-time high of $254.4 billion, breaking above the $250 billion threshold for the first time. The data sheds some light on the massive shift in sentiment as investors increasingly see digital assets as both a hedge and an opportunity in an environment shaped by monetary easing and political uncertainty.

Japan’s “Iron Lady” Fuels Crypto Optimism

Crypto can also receive a political boost in Japan. Japan’s election of Sanae Takaichi as its next prime minister started a wave of optimism across financial markets and among cryptocurrency investors. 

Her victory sent the Nikkei index soaring 4.75% on Monday to a record closing high of 47,734.04. This suggests that there is investor confidence in her pro-growth and innovation-driven policies. Takaichi will officially take office on Oct. 15, and is set to become Japan’s first female prime minister. She is already being dubbed the country’s “Iron Lady” for her strong stance on economic reform.

Sanae Takaichi

Market sentiment surged after her election as traders welcomed her promises of low interest rates, tax cuts, and fiscal stimulus. Many believe these measures could inject fresh energy into Japan’s slowing economy. While Takaichi did not comment specifically on Bitcoin, her track record indicates a supportive attitude toward digital innovation. 

During her time as minister for internal affairs and communications in 2019, she backed the legality of cryptocurrency donations to political figures, distinguishing them from traditional cash or securities contributions under Japan’s Political Funds Control Act.

Her election also comes at a pivotal time for global markets. With the US government shutdown fueling volatility and weakening confidence in the dollar, investors are turning to alternative stores of value like gold and Bitcoin. 

Analysts suggest Takaichi’s administration could boost Japan’s crypto market. Charles d’Haussy, CEO of the dYdX Foundation, explained that her expected monetary easing has already lifted Bitcoin’s value against the yen and could enhance local investor sentiment. He added that her leadership may also pave the way for clearer crypto regulations and broader adoption.

Japan’s regulators have already been laying the groundwork for a more crypto-friendly environment under former Prime Minister Fumio Kishida’s “New Capitalism” strategy. Earlier this year, the Financial Services Agency proposed a reclassification of cryptocurrencies as “financial products,” which could potentially open the door for crypto exchange-traded funds and a standardized 20% tax rate on digital asset income. 

With Takaichi’s innovation-forward stance, Japan could soon step up as a global leader in the next wave of crypto adoption.