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Ethereum Drives $11 Billion Crypto ETF Inflows Amid US Policy Uncertainty

Ethereum ETF Inflows

In the past seven weeks, crypto exchange-traded funds (ETFs) and other digital asset investment products have attracted a remarkable $11 billion in inflows, signaling growing investor interest despite ongoing uncertainty surrounding US monetary policy. Ethereum (ETH) has emerged as the clear leader in this wave of capital, drawing $1.5 billion alone during this period, according to the latest weekly report from CoinShares.

Strong Inflows in a Slowing Market

The crypto market has experienced sustained inflows into investment products over the past seven weeks, totaling $11 billion. However, the pace of these inflows has recently begun to slow, reflecting cautious investor sentiment as they await clearer signals from the US Federal Reserve regarding inflation and interest rate changes.

James Butterfill, CoinShares’ head of research, noted that “there has been a noticeable deceleration amid uncertainty over monetary policy, with investors adopting a wait-and-see stance ahead of further signals from the US Federal Reserve.” This uncertainty around the future direction of monetary policy is causing many investors to hold back from making aggressive moves in the crypto space.

Despite the overall slowdown, last week alone saw $224 million in fresh inflows into digital asset investment products, extending the seven-week streak of positive capital movement.

Ethereum Leads the Charge

Ethereum-related investment products have consistently outperformed others during this period. For the seventh consecutive week, Ethereum saw fresh inflows totaling $295.4 million, bringing the cumulative gains to $1.5 billion. This influx represents roughly 10.5% of all Ethereum assets under management (AUM), marking the strongest run for ETH-related investment products since the US elections in November last year.

Butterfill pointed out that this trend indicates a significant rebound in investor confidence toward Ethereum, which had previously suffered outflows amid price stagnation. The renewed interest may reflect optimism about Ethereum’s upcoming network upgrades and its dominant position in the decentralized finance (DeFi) and NFT ecosystems.

Bitcoin and XRP Face Continued Outflows

In contrast to Ethereum’s strong performance, Bitcoin (BTC) and XRP have experienced consecutive weeks of outflows. Bitcoin-related investment products recorded a $56 million withdrawal last week, adding to a total of $57 million in outflows for the month. Even short Bitcoin products, which investors use to bet on price declines, saw outflows totaling $4.1 million, signaling reduced interest in bearish bets on BTC.

XRP, too, has faced outflows for the third consecutive week, losing $6.6 million during this period. However, XRP remains a favored asset among institutional investors, who have poured approximately $179 million into XRP products this year. This interest likely stems from XRP’s utility in cross-border payments and ongoing developments related to regulatory clarity.

Altcoins Show Mixed Performance

While Ethereum leads and Bitcoin and XRP face outflows, some altcoins have recorded positive inflows. Notably, Sui, a newer entrant in the blockchain space, saw $1.1 million in inflows last week, pushing its total inflows to $100 million for 2025. Chainlink (LINK) also attracted modest investment, gaining $200,000 during the same period.

This mixed performance highlights how investor attention is shifting beyond the major cryptocurrencies, with emerging projects capturing interest amid a dynamic market environment.

Impact of US Monetary Policy on Crypto Investment

The cautious tone among investors largely stems from uncertainty about the US Federal Reserve’s next moves regarding inflation management and interest rate adjustments. Crypto markets, like traditional financial markets, are highly sensitive to monetary policy changes because they influence liquidity, risk appetite, and investment flows.

The slowing pace of ETF inflows suggests investors are adopting a wait-and-see approach, preferring to monitor economic signals before committing additional capital. As the Federal Reserve communicates further guidance, market participants will likely adjust their strategies accordingly.

Outlook for Crypto ETFs and Digital Asset Products

Despite recent volatility and policy uncertainty, the long-term trend for crypto ETFs and digital asset investment products appears positive. The $11 billion inflow over seven weeks shows sustained demand, especially for Ethereum-based products, which are benefiting from their strong utility and development roadmap.

Institutional investors continue to play a crucial role in this growth, bringing more capital into regulated products that offer exposure to crypto assets while mitigating some risks associated with direct coin ownership.

As regulatory clarity improves and blockchain technology matures, crypto ETFs are expected to become even more popular, providing accessible entry points for mainstream investors and further legitimizing the digital asset market.

Conclusion

The crypto investment landscape is evolving rapidly amid a backdrop of US monetary policy uncertainty. Ethereum is clearly leading the inflow momentum, while Bitcoin and XRP face challenges from ongoing outflows. With $11 billion pouring into crypto ETFs and investment products in just seven weeks, the market shows resilience and growing institutional interest. Investors remain cautious but optimistic, positioning themselves carefully as they await further economic signals and regulatory developments.

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dan saada

Dan hold a master of finance from the ISEG (France) , Dan is also a Fan of cryptocurrencies and mining. Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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