Cryptocurrency investment products attracted $572 million in inflows last week, rebounding after the prior week saw the end of a record-breaking 15-week inflow streak totaling $27.8 billion.
The data, published by European crypto asset manager CoinShares on Monday, shows that global crypto exchange-traded products (ETPs) benefited from a market recovery that pushed both Bitcoin and Ether prices higher.
Ether crossed the $4,000 mark for the first time since December 2024, while Bitcoin climbed back above $120,000.
Year-to-Date Flows Hit All-Time High
With last week’s inflows, total year-to-date (YTD) investment into crypto ETPs reached a record $30.7 billion.
Assets under management (AUM) also hit a historic peak of $226 billion.
These figures reflect renewed investor optimism following a volatile start to August.
401(k) Policy Shift Boosts Sentiment
James Butterfill, CoinShares’ head of research, attributed much of the week’s late inflows to a major policy announcement in the United States.
“In the latter half of the week, however, we saw $1.57 billion of inflows, likely spurred by the government’s announcement permitting digital assets in 401(k) retirement plans,” Butterfill said.
Earlier in the week, however, the market saw $1 billion in outflows, which he linked to concerns about slowing economic growth after weak U.S. payroll data.
Ether ETPs Lead the Market
Ether-based ETPs continued to outperform, bringing in nearly $270 million in inflows last week.
“This pushed year-to-date inflows to a new record of $8.2 billion, while recent price gains have driven total assets under management to an all-time high of $32.6 billion, up 82% so far this year,” Butterfill said.
The surge follows strong July performance, during which ETH-based products also led the market.
Bitcoin ETPs Recover After Outflows
Bitcoin ETPs saw $265 million in inflows, ending a two-week streak of outflows.
This recovery suggests that investors are regaining confidence in BTC’s near-term trajectory, particularly as institutional adoption deepens.
Altcoins Attract Investor Interest
ETPs tracking Solana (SOL), XRP, and Near Protocol (NEAR) also saw meaningful inflows.
Solana products brought in $21.6 million, XRP attracted $18.4 million, and NEAR saw $10.1 million in new investments.
BlackRock Approaches $100B in Crypto AUM
Among issuers, BlackRock’s iShares crypto ETFs led the way with $294 million in inflows.
While that’s down 61% from the prior week’s $749 million, the funds are now close to the $100 billion AUM milestone, ending Friday at $98.9 billion.
Grayscale Investments, the second-largest issuer with $35.4 billion in AUM, recorded $87 million in inflows.
Bitwise posted $95 million, while Fidelity Investments experienced the largest issuer-level outflows, losing $55 million.
Market Outlook
The return of inflows across multiple asset categories signals improving sentiment ahead of key macroeconomic events this quarter.
With U.S. policy shifts favoring broader crypto integration into retirement accounts, analysts expect ETP inflows to remain strong in the near term.
Bitcoin (BTC) approached $119,000 ahead of a key weekly close, sparking expectations of a strong start to the week among traders.
Weekend trading saw BTC/USD hit $118,760 on Bitstamp, setting new August highs.
Data from CoinGlass showed $350 million in crypto liquidations over 24 hours.
Support Levels and Resistance Targets
Analyst Rekt Capital noted that BTC is close to reclaiming $117,200 as a support level.
Popular trader BitBull said a 10% move higher could trigger $18 billion in short liquidations, potentially pushing BTC above $120,000.
He predicted a brief pullback early in the week before another push higher.
CME Gap Considerations
Investor Ted Pillows pointed out a CME gap around $116,500, suggesting BTC might dip to fill it before rallying to a new all-time high.
Daan Crypto Trades described weekend price action as “choppy” and expects BTC to take the spotlight if it breaks $120,000.
XRP has jumped more than 10% since Thursday, trading at $3.29 after Ripple and the U.S. Securities and Exchange Commission (SEC) agreed to dismiss their respective legal appeals.
The move brings an end to a multi-year legal battle that has weighed heavily on XRP’s market performance.
Market analysts say the resolution has reignited interest among traders and investors.
XRP Futures Activity Surpasses Solana
In the past 24 hours, XRP futures trading volume surged more than 200% to $12.4 billion, surpassing Solana’s $9.6 billion, according to on-chain data from Glassnode.
A sharp rise in futures volume is often linked to heightened speculative trading, particularly after significant news developments.
XRP open interest, reflecting the value of unsettled futures contracts, also increased 15% to around $5 billion.
Glassnode data showed XRP’s daily funding rate at 0.01%, indicating a tilt toward long positions as traders bet on continued price gains.
However, the analytics firm warned that heavy long positioning can magnify downside risks, with overleveraged traders vulnerable to forced liquidations if prices turn lower.
Key Support Levels Identified
Cost basis distribution data highlights the $2.80–$2.82 price range as a critical area of support.
More than 1.70 billion XRP tokens were acquired within this band, suggesting many holders are likely to defend their positions if prices decline.
Market watchers note that such concentrated buying zones can provide strong price floors.
Technical Patterns Point to 35% Upside
XRP’s recent price rally pushed it above the upper trendline of a bull flag formation.
Trading volumes have risen in tandem, supporting the breakout momentum.
Based on traditional chart analysis, the pattern suggests a potential move to over $4.50 — a gain of roughly 35% from current levels — by September or October.
Expectations of a Federal Reserve rate cut in September could further fuel appetite for risk assets, including cryptocurrencies.
Multiple analysts have issued bullish forecasts.
Mikybull Crypto has predicted XRP could climb to between $5 and $8 by the end of 2025, while another analyst, Dom, has projected a price of $10.
XRP surged past the $3 mark for the first time in over a week, driven by mounting optimism that the U.S. Securities and Exchange Commission (SEC) may soon dismiss its appeal against Ripple Labs.
The token climbed over 4.5% in 24 hours to hit $3.04 on Thursday, according to data from Cointelegraph.
The rebound came amid growing speculation that a resolution to the years-long legal battle between the SEC and Ripple is approaching.
Bill Morgan Predicts Appeal Dismissal
Investor sentiment was further bolstered by legal commentary from Bill Morgan, an attorney closely following the case.
Posting on X, Morgan suggested that the SEC is likely to drop its appeal before the August 15 deadline set by the U.S. Court of Appeals for the Second Circuit.
“Dismissal of the appeals may happen, and is more likely to happen than not, before the 15 August deadline to report to the appeal court on the status of the appeals,” he said.
Morgan pointed out that Ripple had already agreed to dismiss its own appeal and that both sides had previously signed a conditional settlement agreement.
Although the terms of that agreement were not satisfied at the time, the groundwork remains for a conclusion if court conditions are met.
While the parties could request an extension from the court, Morgan believes this is unlikely.
Legal Milestone Could End Years-Long Battle
The upcoming joint report from Ripple and the SEC to the Second Circuit could mark a critical turning point.
If the appeal is dismissed and the court grants approval, the case may be finalized and returned to the district court for formal settlement authorization.
That would effectively bring an end to one of the longest-running legal battles in crypto history.
SEC vs Ripple: A Pivotal Case in Crypto Regulation
The SEC originally filed its lawsuit against Ripple in December 2020, accusing the company of raising $1.3 billion through unregistered securities sales via XRP.
The case has since become a central issue in debates over crypto regulation.
In July 2023, Judge Analisa Torres ruled that XRP does not constitute a security when sold to retail investors, though it is a security in institutional sales.
That ruling marked a partial win for Ripple but also resulted in a $125 million fine levied in August 2024.
Settlement Efforts Underway
Efforts to resolve the dispute have continued.
On June 12, Ripple and the SEC filed a joint motion to release the $125 million held in escrow for settlement purposes.
The proposed split would allocate $50 million to the SEC and return $75 million to Ripple, pending court approval.
If accepted, the payment would likely close the case—ending nearly five years of legal friction that has weighed heavily on XRP’s price and investor confidence.
Broader Market Implications
The outcome of this case could have far-reaching consequences beyond Ripple.
Many in the crypto industry view it as a precedent-setting event that could clarify how digital assets are regulated in the United States.
A favorable resolution for Ripple may also encourage other crypto firms to challenge the SEC’s regulatory stance.
Bitcoin’s price may be on the verge of a major breakout as dwindling reserves on both exchanges and over-the-counter (OTC) desks create an imbalance between supply and demand.
Swing trader Bedlam Capital Pres has forecast a “supply shock” that could “uncork” Bitcoin’s next major rally.
OTC Balances Near Critical Lows
Bedlam Capital Pres, a strong advocate for Bitcoin treasury company Strategy (MSTR), pointed to rapid declines in OTC desk BTC holdings as a key driver of potential price gains.
“$MSTR buys most of its BTC from OTC trade desks. MSTR bought 182,391 BTC YTD,” the trader said, referencing a Cointelegraph report.
“OTC trade desks’ collective balances are down to around 155,000 BTC. As the OTC desks run low, the demand on the public exchanges will increase, and that is what will uncork BTC’s price.”
The analysis comes as corporate Bitcoin holdings continue to climb.
On Monday alone, treasuries added 630 BTC despite Bitcoin trading near three-week lows.
Strategy, the largest public company holder of Bitcoin, has been acquiring the asset almost every week this year regardless of market price.
Exchange Reserves Bottoming Out
Glassnode data shows combined exchange balances stood at 2.919 million BTC as of Tuesday, marking a significant reduction in available supply.
This trend has coincided with long-term holders taking profits during recent price dips.
“In sum, the market has shifted from euphoria to reassessment, with oversold conditions and seller exhaustion hinting at potential for a bounce,” Glassnode noted in its Market Pulse newsletter.
“However, fragility is growing, and the structure remains vulnerable to external negative catalysts or delayed demand revival.”
Profit-Taking Still Evident
Market participants remain wary of further corrections.
Glassnode calculated over $1 billion in realized profits over a 24-hour period this week.
“$362M (≈35.8%) came from ancient coins held for 7–10 years – a rare event that may reflect internal transfers or true exits,” the firm explained.
“Another $93M came from 1–2 year holders, also marking notable profit realization.”
With OTC liquidity thinning and exchange reserves nearing multi-year lows, analysts argue that even modest demand growth could drive substantial price appreciation in the coming months.
United States spot Ether exchange-traded funds (ETFs) experienced their steepest single-day net outflows on Monday, shedding nearly half a billion dollars.
According to investment firm Farside Investors, Ether ETFs posted $465 million in outflows, surpassing all previous daily records since the funds were introduced.
The mass withdrawal followed an earlier outflow of $152 million on Friday, which ended a strong 20-day streak of consistent inflows.
Investor Caution Following July Surge
The sudden reversal in flows may indicate a broader shift in investor sentiment after a particularly bullish July.
Last month, spot Ether ETFs attracted a record $5.43 billion in net inflows.
However, the pullback came as Ether prices dropped significantly, falling 12% from $3,858 on Thursday to $3,380 on Sunday.
By Tuesday, the token had recovered to $3,629, based on CoinGecko data.
BlackRock’s ETHA Takes the Hardest Hit
Among individual funds, BlackRock’s iShares Ethereum Trust (ETHA) bore the brunt of the outflows.
The fund alone lost nearly $375 million in net assets on Monday.
Despite the setback, ETHA retains a cumulative net inflow of $9.3 billion and total assets of $10.7 billion.
Fidelity’s Ethereum Fund (FETH) also experienced notable outflows, recording $55.11 million in net withdrawals for the day.
FETH currently holds $2.4 billion in assets and has a total net inflow of $2.2 billion since launch.
Grayscale Products Also See Withdrawals
Grayscale’s Ether-focused products were not spared.
The Grayscale Ethereum Mini Trust saw a net outflow of $28 million, while the Grayscale Ethereum Trust (ETHE) recorded $6.9 million in outflows.
Grayscale’s ETHE fund, which has been under pressure for months, now has a cumulative net outflow of $4.3 billion and net assets of $4.1 billion.
Meanwhile, the Ethereum Mini Trust maintains $2.3 billion in assets and a $1.1 billion net inflow.
Institutional Demand Remains Resilient
Despite ETF withdrawals, blockchain activity indicates continued institutional interest in ETH.
On Tuesday, blockchain analytics platform Lookonchain reported that three wallets—believed to be controlled by institutional players or whales—acquired a total of 63,837 ETH, valued at approximately $236 million.
These purchases were reportedly made through over-the-counter transactions facilitated by FalconX and Galaxy Digital.
Since July 9, Lookonchain has identified 14 new wallets collectively accumulating over 856,000 ETH—worth more than $3.1 billion.
Market Watching for Trend Reversal
The divergence between ETF flows and institutional activity highlights a mixed outlook for Ether in the near term.
Retail-driven ETF outflows suggest caution, while large-scale OTC purchases signal that sophisticated investors may be positioning for a longer-term play.
How the market interprets these conflicting signals could influence Ether’s price trajectory and ETF sentiment heading into the final months of the year.
After 15 weeks of continuous inflows, cryptocurrency investment funds saw a reversal in sentiment, posting $223 million in outflows last week.
CoinShares’ latest report attributes the drop to investor reactions following a hawkish tone from the U.S. Federal Reserve during its recent FOMC meeting.
Although the week began with $883 million in inflows, the trend reversed sharply by mid-week.
“Given we have seen US$12.2bn net inflows over the last 30 days, representing 50% of inflows for the year so far, it is perhaps understandable to see what we believe to be minor profit taking,” CoinShares stated.
Bitcoin Funds Lead the Downtrend
Bitcoin investment products bore the brunt of the shift, registering $404 million in outflows — the largest among all cryptocurrencies tracked.
Bitcoin’s historical performance in August likely played a role in the pullback, with CoinGlass data showing a median return of -7.49% for the month.
The Federal Reserve’s hawkish messaging also reduced the odds of a rate cut in September from 63% to 40%, according to Cointelegraph.
This cooled broader risk appetite, contributing to the downturn in crypto sentiment.
Analysts Look to Post-Summer Catalysts
Despite the dip, some analysts remain optimistic about a potential turnaround in the coming months.
Matrixport, in a research note published Friday, suggested that Bitcoin could rally when the U.S. Congress reconvenes after Labor Day.
“Fiscal uncertainty has historically been a powerful tailwind for hard assets, and Bitcoin remains front and center in the narrative,” the note read.
Ether Funds Continue to Attract Capital
While Bitcoin faltered, Ether funds remained resilient.
ETH-based exchange-traded products (ETPs) recorded their 15th consecutive week of positive inflows, totaling $133 million.
CoinShares pointed to “robust positive sentiment for the asset” as a key reason behind Ether’s sustained popularity among institutional investors.
This diverging trend between Bitcoin and Ether underscores the shifting preferences within the crypto investment landscape.
Altcoins Show Mixed Results
Several altcoins also managed to stay in the green.
XRP-focused funds saw $31.2 million in inflows, while Solana and Sui brought in $8.8 million and $5.8 million, respectively.
These results indicate that while overall sentiment has cooled, select assets continue to attract niche investor interest.
Trump Tariffs Rattle Markets, but Crypto Holds Steady
Adding to market tensions, President Donald Trump signed an executive order last Thursday introducing reciprocal import tariffs of 15% to 41% on goods from 68 countries.
The decision triggered unease across global markets, though crypto markets remained largely stable.
Stella Zlatareva, dispatch editor at Nexo, said the digital asset space saw a “recalibration” rather than a breakdown.
“The digital asset market remains firmly above $3.7 trillion, anchored by structural flows, institutional conviction and the promise of clear US regulation,” she noted.
“Altcoin stability may gradually return,” Zlatareva added, suggesting that investors are still seeing long-term potential in the sector.
As fresh tariff fears unsettle global markets, Eric Trump has reiterated his backing for Bitcoin and Ethereum, urging investors to seize the current price dip as a buying opportunity.
The son of U.S. President Donald Trump made similar remarks earlier this year when economic uncertainty was already clouded by tariff pressures.
At that time, he called it a “great time” to buy the two leading cryptocurrencies.
Market Swings Continue
Ethereum later plummeted below $1,400, hitting its lowest level since November 2023.
But a sharp reversal followed, driven by a mix of improving investor sentiment and increasing signs of corporate adoption.
By earlier this week, Ethereum had surged back to around $3,900.
However, the recovery has since stalled.
As of press time, Ethereum had pulled back to roughly $3,500, marking a 3% decline over the past 24 hours.
Bitcoin also saw a slight dip, trading near $113,500, according to CoinGecko.
Trump Family’s Crypto Exposure
Eric Trump’s vocal support for digital assets isn’t new, nor is it symbolic.
In December, he disclosed holdings in multiple cryptocurrencies—including Bitcoin, Ethereum, Solana, and Sui.
His involvement extends to crypto mining as well.
American Bitcoin, a mining company linked to both Eric and Donald Trump Jr., currently holds 215 BTC.
In another notable move, World Liberty Financial—a decentralized finance (DeFi) venture backed by the Trump family—reportedly acquired 77,226 ETH at an average entry price of $3,294 per coin.
Blockchain analytics firm Lookonchain revealed that some of these Ethereum holdings may have been sold at a loss during the April market dip.
Legislative Tailwinds Meet Volatility
Despite short-term volatility, the broader crypto market continues to find support in pro-crypto legislative developments and institutional moves.
Still, macroeconomic concerns, particularly around renewed tariff implementations, have tempered enthusiasm.
The U.S. administration’s latest trade posturing has triggered risk aversion across equities and digital assets alike.
Eric Trump, however, appears unfazed by the pullback.
By reiterating his confidence in Ethereum and Bitcoin, he’s aligning with the growing number of institutional voices that see crypto as a long-term hedge against policy-driven economic uncertainty.
The Trump administration remains committed to building a strategic Bitcoin reserve, despite its absence in a recent digital asset policy report.
Robert “Bo” Hines, the executive director of the US President’s Council of Advisers on Digital Assets, reaffirmed the initiative during an appearance on the Crypto in America show.
“We do believe in accumulation,” Hines stated when asked directly about the Strategic Bitcoin Reserve.
He emphasized that such a reserve “has been established,” and also referenced a broader national digital assets stockpile.
According to Hines, Bitcoin holds a unique position in the digital asset space.
“Bitcoin is in a class of its own and everyone recognizes that,” he said.
Infrastructure Taking Shape Behind the Scenes
While critics noted the lack of mention of a Bitcoin reserve in the recently released White House report, Hines assured the public that efforts are still underway.
He explained that establishing the necessary infrastructure requires careful planning and significant labor.
“There are countless ways that we can accumulate,” he said.
“I think that people will be very pleased with the direction that we are going, and we’ll start moving on that in short order.”
The administration, he added, also wants to “give credence” to innovation across other blockchain ecosystems, though no specific altcoins or projects were named.
White House Focused on Broader Regulatory Framework
On Wednesday, the President’s Working Group on Digital Asset Markets unveiled its recommendations aimed at strengthening America’s leadership in digital financial technologies.
However, the document made no reference to a strategic Bitcoin reserve.
Instead, the report emphasized the need to develop a strong and transparent regulatory framework for the industry.
“We understand the importance of the strategic Bitcoin reserve,” Hines insisted in response.
“We’re enormous fans of Bitcoin and the Bitcoin community, we want to deliver for them as well, and I’m certain that we will.”
US Government Eyes More Bitcoin
Pressed on how much Bitcoin the federal government currently holds, Hines declined to disclose exact figures.
“I can’t discuss that right now,” he said.
“There are several reasons we’re not disclosing that right now, there might be a time when we do, but I will say we want as much as we can possibly get […] and we’re going to continue to work on that.”
According to blockchain analytics firm Nansen, the US government is estimated to hold around 198,000 BTC, valued at approximately $2.35 billion.
President Trump officially signed an executive order establishing the Strategic Bitcoin Reserve and the US Digital Asset Stockpile back in March.
Strategy, formerly known as MicroStrategy, has expanded its Bitcoin holdings significantly by acquiring 21,021 BTC following a massive capital raise.
The company, which already holds the largest Bitcoin treasury among publicly traded firms, revealed on Tuesday that it made the purchase at an average price of $117,256 per coin.
This latest move brings Strategy’s total Bitcoin holdings to 628,791 BTC.
According to data from BitcoinTreasuries.NET, this is the company’s largest acquisition since the end of March.
STRC IPO Becomes Biggest US Listing of 2025
Strategy financed the purchase through its fourth preferred stock offering — STRC — raising $2.5 billion.
The firm sold 28 million shares of its Variable Rate Series A Perpetual Preferred Stock at $90 per share, significantly upsizing the deal from its initial $500 million target.
The STRC issuance is now the largest US IPO of 2025 in terms of gross proceeds, surpassing the $1 billion offering from Circle Internet Group earlier this year.
Strategic Financing Model Draws Copycats
This latest acquisition is part of Strategy’s broader approach of using capital markets to increase its Bitcoin reserves.
Over the years, the company has deployed a mix of equity offerings, debt instruments, and convertible notes to fund its Bitcoin purchases.
This strategy has inspired at least 160 public companies to add cryptocurrencies to their balance sheets.
STRC to Begin Nasdaq Trading
Strategy confirmed that STRC would begin trading on the Nasdaq on Wednesday.
This marks the first perpetual preferred security issued by a Bitcoin treasury firm to be listed on a US exchange.
STRC will offer monthly board-adjusted dividends, making it attractive to income-oriented investors.
It joins a family of similar instruments from Strategy, including STRK, STRF, and STRD — each designed to meet different investment goals, with varying yields and dividend structures.
Shares Show Modest Reaction Ahead of Earnings
Shares of Strategy (MSTR) dipped 2.26% at Tuesday’s close but slightly recovered 0.52% in after-hours trading to reach $396.70.
So far in 2025, MSTR shares are up by 31.55%, a slower pace compared to the 358.55% surge seen in 2024.
This latest Bitcoin buy comes just ahead of the company’s second-quarter earnings report, due Thursday, which will detail how its fundraising and crypto investments have impacted its financials through June 30.