Donald Trump 401(k) Order Sparks Stunning $1.57B Crypto Recovery
Key Takeaway:
Digital asset exchange-traded products (ETPs) experienced a robust recovery last week, attracting about $572 million in net inflows after early-week outflows of $1 billion. According to CoinShares’ latest data, this rebound was fueled by a significant $1.57 billion inflow, catalyzed in part by renewed investor optimism following former President Donald Trump’s executive order promoting crypto options within 401(k) retirement plans.
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Crypto ETPs witnessed a striking resurgence last week after facing a turbulent start. CoinShares’ most recent weekly report highlights a net inflow of $572 million, marking a notable turnaround from earlier outflows of around $1 billion. These early-week withdrawals coincided with disappointing US payroll figures, which initially dampened market sentiment.
However, investor confidence rapidly reversed following key developments in the regulatory landscape. Notably, ex-President Donald Trump signed an executive order encouraging the inclusion of cryptocurrencies within 401(k) retirement savings plans. This move is widely seen as a pivotal step toward mainstream acceptance and adoption of digital assets within traditional financial frameworks.
The market responded accordingly. Throughout the week, crypto ETPs amassed a total inflow of $1.57 billion, demonstrating a strong appetite for these investment vehicles among institutional and retail investors alike. Bitcoin ETPs led the charge, attracting $331 million, while ether-based ETPs brought in $24 million. Other altcoins, including Solana (SOL), reflected increased investor interest in diversified crypto exposure.
This resurgence in inflows arrives amid persistent macroeconomic uncertainties. The weak US jobs report initially unsettled markets, prompting investors to reassess risk. Yet, the regulatory clarity provided by the executive order and ongoing mainstream recognition of cryptocurrencies helped stabilize sentiment and drive renewed allocations into crypto assets.
Looking at geographic trends, North America remained a dominant region for crypto ETP investments, accounting for most of the inflows. This underscores the continued importance of the US market in shaping the trajectory of digital asset adoption. Europe and other regions showed steadier, more moderate investment patterns.
Overall, the latest data from CoinShares reinforces the growing role of regulated crypto investment products. The influx of $1.57 billion inflows within a week highlights increasing investor willingness to incorporate digital assets into diversified portfolios — especially as regulatory frameworks evolve to provide clearer guidance and greater legitimacy.
As cryptocurrencies become more integrated into retirement planning options, like the 401(k) proposals outlined in Trump’s recent executive order, the potential for expanded institutional participation and mainstream acceptance grows. This development could play a crucial role in shaping the future of crypto investment vehicles, enhancing both access and confidence for everyday investors.
In summary, after a week marked by initial volatility linked to economic data, the crypto ETP market rebounded strongly. The surge of $1.57 billion in inflows, driven by positive regulatory signals, signals an important shift toward broader integration of digital assets in traditional investment channels.
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Source: https://cryptoslate.com/donald-trumps-401k-executive-order-sparks-1-57-billion-crypto-etp-recovery/