Jan 28, 2025
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1 min. read
Crypto investment products experienced a major boost last week, with $1.9 billion in inflows, driven by growing enthusiasm around Bitcoin as a potential strategic reserve asset. This surge brought the total year-to-date inflows for 2025 to $4.8 billion, according to a CoinShares report dated January 27.
Bitcoin dominated the inflows, attracting $1.6 billion—or 92% of the total—raising its year-to-date investment tally to $4.4 billion. Short-Bitcoin ETFs also saw $5.1 million in inflows, suggesting that some traders are hedging against potential market corrections following Bitcoin’s recent rally.
The U.S. led the pack with $1.7 billion in inflows, followed by Canada, Switzerland, and Germany, which brought in $31 million, $35 million, and $23 million, respectively.
Ethereum rebounded strongly with $205 million in inflows after a rocky start to the year. XRP continued its momentum, adding $18.5 million, following its recent all-time high. Among smaller altcoins, Solana brought in $6.9 million, Chainlink saw $6.6 million, and Polkadot attracted $2.6 million. Notably, no digital asset investment products experienced outflows during the week, according to CoinShares’ head of research, James Butterfill.
The surge coincided with a spike in centralized exchange trading volumes, which reached $25 billion and accounted for 37% of activity on trusted exchanges. Butterfill called this one of the most significant weeks for the crypto market in recent memory, fueled by anticipation surrounding Bitcoin’s potential as a reserve asset.
However, the push for Bitcoin’s adoption as a strategic reserve remains contentious. Riot Platforms’ VP, Pierre Rochard, accused Ripple of lobbying against the idea, alleging the company is investing millions to promote state-backed digital currencies and defend its XRP-based initiatives. Ripple CEO Brad Garlinghouse responded by asserting that Ripple’s efforts align with broader federal objectives, emphasizing the need for an inclusive approach to digital asset policies.