The digital asset market is off to a strong start this fall as crypto inflows 2025 reached $1.9 billion in the week following the Federal Reserve’s first interest rate cut of the year. According to data from CoinShares, it marked the second straight week of gains and pushed total assets under management (AuM) in crypto investment products to $40.4 billion, the highest level so far in 2025.
This wave of inflows highlights how central bank policy shifts can ripple through the digital asset sector, sparking renewed interest among institutional and retail investors alike.
Fed’s First Cut of 2025 Triggers Demand
The Federal Reserve reduced its benchmark rate by 25 basis points on September 17, setting the new target range at 4.25%. It was the first rate cut since 2023 and followed weaker U.S. labor market data alongside softer inflation readings.
Although Fed officials characterized the move as a “hawkish cut,” signaling caution on future easing, investors ultimately poured back into crypto markets later in the week. Nearly $746 million of inflows came on Thursday and Friday alone, underscoring how closely crypto sentiment tracks macroeconomic developments.
Bitcoin Leads Crypto Inflows 2025
Bitcoin once again took the lion’s share of inflows, attracting $977 million in new capital. That followed $2.4 billion in inflows the prior week, bringing Bitcoin’s four-week tally to an impressive $3.9 billion, according to SoSoValue.
By contrast, short-Bitcoin products recorded $3.5 million in outflows, driving their assets under management to a multiyear low of $83 million. This suggests investors are turning away from bearish bets as optimism grows following the Fed’s shift.
Market action reflected the volatility: Bitcoin briefly climbed above $117,000 before retracing to around $115,089, down 1.2% in 24 hours and about 7% below its all-time high of $124,128.
Ethereum Sees Record Inflows
Ethereum was another major winner, with $772 million in inflows during the week. That pushed its year-to-date total to a record $12.6 billion, cementing ETH-backed products as a top choice for institutional exposure.
Ether traded as high as $4,600 during the week before slipping to $4,465. Volatility was sharp across the board, with more than $105 million liquidated in crypto markets after Fed Chair Jerome Powell’s press conference, including $88.8 million in long positions.
Altcoins Benefit: Solana and XRP
The broader market also participated in the rally. Solana logged inflows of $127.3 million, while XRP attracted $69.4 million. Though smaller than Bitcoin and Ethereum, these inflows highlight how altcoins are increasingly being added to institutional portfolios through exchange-traded products.
Institutional Interest via ETFs
Institutional demand for crypto exposure remains robust, particularly through spot ETFs. On September 19, Bitcoin spot ETFs recorded net inflows of $222.6 million.
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BlackRock’s iShares Bitcoin Trust (NASDAQ:IBIT) led with $246.1 million in daily inflows.
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Grayscale’s Bitcoin Trust (OTCMKTS:GBTC), meanwhile, posted $23.5 million in outflows.
Overall, cumulative net inflows into Bitcoin spot ETFs now total $57.7 billion, with net assets of $152.3 billion—representing 6.6% of Bitcoin’s total market capitalization.
Ethereum ETFs also showed activity, led by BlackRock’s ETHA with $144.3 million in inflows. While Grayscale, Fidelity, and Bitwise products saw modest outflows, overall demand for Ethereum exposure remains strong.
Outlook: What Crypto Inflows 2025 Signal
The surge in crypto inflows 2025 highlights growing investor confidence that digital assets can serve as a hedge and growth play in a shifting macroeconomic landscape. The Fed’s decision to cut rates for the first time in two years may open the door to further inflows if inflation continues to cool and policymakers maintain a balanced approach.
With Bitcoin and Ethereum leading, and altcoins like Solana and XRP gaining traction, crypto appears poised to remain a key destination for capital in the months ahead.
Featured Image: Freepik @ produtizebro
