Digital Asset Funds See Record $5.95B Inflows Amid Fed Cuts and US Instability

Digital asset investment funds logged a record-breaking $5.95 billion in inflows last week, driven by mounting investor demand following a Federal Reserve rate cut, soft US labor data, and growing concerns over political dysfunction in Washington.

The surge in allocations pushed total assets under management to an all-time high of $254 billion, according to CoinShares data shared Monday.

US Leads Record-Breaking $5B Digital Asset Inflows as Europe Follows

While the uptick was global, the US led with $5 billion in inflows, setting a new national record. Switzerland and Germany followed, with inflows of $563 million and $312 million, respectively.

Bitcoin funds attracted the lion’s share, pulling in $3.55 billion, their highest weekly total ever, without triggering notable demand for short-position products, signaling sustained bullish sentiment.

Ethereum products saw $1.48 billion in inflows, lifting their year-to-date tally to $13.7 billion, nearly triple last year’s level.

Solana also shattered its weekly inflow record, drawing $706.5 million last week and bringing its 2025 total to $2.58 billion.

XRP followed with $219.4 million in new capital. In contrast, other altcoins showed minimal investor activity.

The wave of inflows reflects renewed appetite for digital assets amid macro uncertainty, as institutional and retail investors seek alternative exposure to hedge against volatility in fiat and traditional equities.

As reported, US spot Bitcoin ETFs recorded $3.24 billion in inflows last week, their second-largest weekly total since launching in January 2024, according to SoSoValue.

The inflows reversed the prior week’s $902 million outflow and were driven by Bitcoin’s surge past $125,000, marking a strong start to “Uptober.”

🚀 Bitcoin surged to a new all-time high above $125,700 on Sunday morning, breaking past its previous record of $124,500 set in August.#Bitcoin #Cryptohttps://t.co/ujDxDEvPFm

— Cryptonews.com (@cryptonews) October 5, 2025

BlackRock’s IBIT led with $1.8 billion, followed by Fidelity’s FBTC with $692 million.

IBIT also dominated trading volumes, signaling institutional preference for the fund. Friday alone saw $985 million in net inflows, just shy of the all-time daily record.

The momentum underscores renewed investor appetite and strong price action, with Bitcoin already up over 10% in October.

Bitcoin ETPs Now Hold Over 1.47 Million BTC

Data from HODL15Capital shows bitcoin ETPs now hold more than 1.47 million BTC, or about 7% of the capped supply, with U.S. ETFs accounting for 1.29 million BTC.

BlackRock’s IBIT leads with 746,810 BTC, followed by Fidelity’s FBTC with nearly 200,000.

Globally, bitcoin ETPs have added 170,000 BTC so far in 2025, worth $18.7 billion, though August brought net outflows of $301 million as investors rotated into ether funds, which drew $3.95 billion.

Meanwhile, the U.S. Securities and Exchange Commission is reviewing 92 crypto ETF applications, including multiple Solana and XRP products.

Franklin Templeton’s proposals for both tokens were delayed until November 14, while BlackRock’s Ethereum staking amendment was pushed to October 30.

Bloomberg analysts estimate a 95% approval probability for Solana and XRP ETFs this year, with prediction markets putting Solana’s odds near 99%.

Despite near-term outflows, digital asset inflows have bounced back sharply in September, with $2.48 billion entering funds last week alone.