US shutdown and weak jobs data drive record $6B crypto inflows

A US government shutdown and the weak jobs report have pushed digital asset investment products to their strongest weekly inflows on record.

According to the latest CoinShares report, crypto-related investment products attracted $5.95 billion in inflows last week, pushing total assets under management (AUM) to an all-time peak of $245 billion.

The rally did not emerge from retail excitement or online speculation. Instead, it stemmed from macroeconomic unease following the US government shutdown and disappointing employment data.

Investors appeared to interpret both as warning signs about the country’s fiscal resilience and the Federal Reserve’s policy direction.

James Butterfill, head of research at CoinShares, explained that the inflows reflected a delayed investor reaction to the Federal Open Market Committee’s recent rate cut and current US government events.

According to him:

“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.”

This resulted in a wave of capital seeking refuge in assets perceived as both liquid and resilient.

The CoinShares report suggested that investors appear to be treating digital assets not as speculative plays but as macro hedge instruments that respond to fiscal turbulence and liquidity shifts.

Bitcoin sees its strongest week

As expected, Bitcoin absorbed most of last week’s inflows, capturing a record $3.55 billion in fresh capital. This is its strongest week in history.

Notably, the 12 US-based Bitcoin ETF providers, including BlackRock, accounted for roughly $3.2 billion of that total, which is their second-strongest weekly performance since launch last year.

Chart Showing Crypto ETP Providers Weekly Inflow for the Week Ending Oct. 4 (Source: CoinShares)

Conversely, short Bitcoin products saw no flows for the week, signaling renewed investor confidence as prices approach new highs. BTC price reached a new all-time high of more than $125,000 during the weekend.

This move highlights Bitcoin’s enduring role as the market’s liquidity anchor and a preferred hedge in uncertain times.

Ethereum and Solana lead inflows

Ethereum also turned a corner during the period.

After weeks of redemptions, the asset drew $1.48 billion in new capital, lifting its year-to-date total to $13.7 billion. Notably, this is nearly triple its total inflows for last year.

Chart Showing Crypto Assets Weekly Inflow for the Week Ending Oct. 4 (Source: CoinShares)

At the same time, Solana-focused funds hit an all-time high of $706.5 million, pushing their 2025 tally to $2.85 billion, while XRP saw $219.4 million amid anticipation of new spot investment products.

These inflows show that crypto markets are no longer reacting to hype but to macro signals, including liquidity trends, rate policy, and institutional sentiment.

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