Crypto Markets Experience a Major Rebound: $572 Million in Net Inflows

Global cryptocurrency investment products saw significant inflows last week, totaling $572 million, marking the end of four months of outflows. According to CoinShares, this surge was driven by various factors including growing DeFi applications and increased institutional investments from prominent firms like BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares. The inflows reversed an earlier-week outflow of $1 billion triggered by concerns about weak U.S. employment data. Notably, a government announcement permitting cryptocurrencies within 401(k) retirement plans contributed to a substantial influx of $1.57 billion in the latter part of the week. CoinShares’ report reveals that these positive inflows primarily stemmed from the inclusion of cryptocurrencies in US 401(k) plans, contrasting with early-week outflows driven by concerns about U.S. job growth.