Crypto inflows surge to $578M as Trump’s 401k move reverses market outflows

The crypto inflows surge back into positive territory this week, hitting $578 million after President Donald Trump’s surprise executive order opened U.S. 401(k) retirement plans to digital assets. The policy shift triggered a sharp reversal from mid-week outflows, restoring investor confidence and sparking renewed demand for Bitcoin, Ethereum, and other major cryptocurrencies.

In a dramatic turn of events, crypto inflows surge back to life—reaching $578 million last week—after President Trump’s executive order allowing crypto in U.S. 401k plans shook markets awake.

This policy pivot sparked a major sentiment reversal, reversing a mid-week slide and setting the stage for renewed demand in digital assets.

How Trump’s 401k shock fueled the Crypto inflows surge

For the week ending August 2, crypto fund inflows had dwindled to $223 million, a stark slowdown from the $2 billion pumped in the prior week.

But Trump’s decision to open retirement plan doors to digital assets ignited a rebound: crypto inflows surge to $578 million by week’s end BeInCrypto.

James Butterfill, CoinShares’ head of research, breaks it down: “After early-week outflows of US $1 billion on weak U.S. payroll data, inflows rebounded to US $1.57 billion following the government’s 401(k) crypto approval, bringing net weekly inflows to US $578 million.” BeInCrypto

Asset breakdown: Bitcoin catches the pack

Ethereum had long led the rally, but the latest data shows Bitcoin rapidly closing in. Ethereum attracted $269.8 million, with Bitcoin not far behind at $265 million in inflows.

Butterfill points out the shift: “Bitcoin saw a recovery following two consecutive weeks of outflows,” signaling renewed confidence in the flagship digital currency BeInCrypto.

On August 7, Trump signed an executive order directing the Department of Labor and SEC to reevaluate retirement account rules, enabling cryptocurrencies, private equity, and real estate within 401k. The Times of IndiaNew York PostThe Guardian.

James Butterfill underscores the magnitude: “This move effectively opens access to bitcoin and other cryptocurrencies for retirement investors” Fortune from coindesk.

Matt Hougan, Chief Investment Officer at Bitwise, weighs in: “The change could transform the crypto markets by introducing a ‘slow, steady, consistent bid’ from retirement contributions.”

Crypto Council for Innovation CEO Ji Hun Kim adds: “Americans should have the opportunity and freedom to include these investments within their retirement plans.”coinglass

Despite the rebound, summer’s usual doldrums persist: total volumes in crypto ETPs remain 23% lower than the previous month, reflecting seasonal trading softness.

Still, the U.S. recorded strongest regional inflows at $608 million, while Canada contributed $16.5 million. Meanwhile, Europe lagged with combined outflows of about $54 million CryptonewsMitrade.

What’s next: Steady momentum—or hype fade?

If the policy leads to routine 401(k) allocations to crypto via default investment options, it could unlock billions more.

Analysts suggest even a 0.1% default allocation across U.S. retirement accounts could channel well over $12 billion into Bitcoin and Ethereum alone.

The latest market turnaround proves one thing—crypto inflows surge isn’t just a headline, it’s a momentum shift.

From Trump’s 401(k) policy shock to Bitcoin’s climb on Ethereum’s heels, crypto inflows surge signals rising investor appetite.

As regulations evolve and access widens, expect crypto inflows surge narratives to dominate, with crypto inflows surge momentum likely shaping the market’s next big leap.