US shutdown and weak jobs data spur record crypto inflows
Investment in digital assets reached a record $5.95 billion last week amid a US government shutdown and disappointing employment figures. This surge pushed total assets under management to $245 billion. Investors turned to cryptocurrencies as a hedge against macroeconomic uncertainty.
The CoinShares report highlighted that crypto-related investment products saw their strongest weekly inflows ever, totaling $5.95 billion. This came after the US government shutdown and weak employment data from Wednesday's ADP Payroll release, raising concerns about fiscal stability and Federal Reserve policy.
James Butterfill, head of research at CoinShares, attributed the inflows to a delayed reaction to the Federal Open Market Committee's recent interest rate cut, combined with the employment weakness and shutdown worries. He stated: “We believe this was due to a delayed response to the FOMC interest rate cut, compounded by very weak employment data, as indicated by Wednesday’s ADP Payroll release, and concerns over US government stability following the shutdown.”
Bitcoin dominated the inflows, attracting a record $3.55 billion, with US-based Bitcoin ETFs from providers like BlackRock contributing about $3.2 billion—their second-best week since launch. Bitcoin's price hit a new all-time high above $125,000 over the weekend, underscoring its role as a liquidity anchor. Short Bitcoin products saw no inflows, indicating growing confidence.
Ethereum rebounded with $1.48 billion in new capital, bringing its year-to-date total to $13.7 billion—nearly triple the previous year's inflows. Solana funds recorded $706.5 million, pushing their 2025 total to $2.85 billion, while XRP drew $219.4 million amid expectations for spot investment products.
These developments suggest investors are viewing digital assets as macro hedges rather than speculative bets, responding to fiscal turbulence and liquidity shifts.