Last week was a good one for crypto investments. After two weeks of money flowing out, things flipped, with a massive $572 million flowing back into crypto investment products. This turnaround is thanks to a mix of economic news and some big regulatory changes.
What Happened?
CoinShares, a crypto research firm, reported the big inflow. Their research head, James Butterfill, explained the rollercoaster. Early in the week, about $1 billion flowed out because of worries about the US economy (weak job numbers didn’t help!). But then, the government announced something huge: 401(k) retirement plans can now include crypto! This news sent $1.57 billion pouring 
into crypto investments.
Where Did the Money Go?
The money wasn’t spread evenly. The US saw the biggest gains, with $608 million flowing in. Canada also saw some inflows ($16.5 million), but Europe was more cautious, with Germany, Sweden, and Switzerland seeing a combined outflow of $54.3 million. It was also a slower trading month overall, with volumes down 23% compared to the previous month. Summer slowdowns often happen.
Ethereum and Bitcoin Lead the Charge
Ethereum was the star performer, attracting $268 million – the most of any asset. This brings Ethereum’s total inflows for the year to a record 
$8.2 billion, and its assets under management hit an all-time high. The DeFi and staking activity around Ethereum is a big reason for its success.
Bitcoin also saw a comeback after a couple of weeks of outflows, attracting $260 million. Interestingly, there was a small outflow from short Bitcoin positions, suggesting fewer people are betting against Bitcoin. Other altcoins like Solana, XRP, and Near Protocol also saw positive inflows.
What Does It All Mean?
This inflow is a good sign, especially with the US government’s decision to allow crypto in 401(k)s. This could bring in a lot more money. However, Europe’s caution shows that not everyone is equally optimistic. Overall, whether this positive trend continues depends on the broader economy, future regulations, and how Bitcoin and Ethereum perform./p>