Cryptocurrency investment products reached unprecedented inflows of $5.95 billion last week, driven by Bitcoin, which accounted for $3.6 billion of this amount. This spike in investment is attributed to worries surrounding a possible US government shutdown that has ignited interest in the crypto market.

CoinShares announced this historic achievement on Monday, noting that the inflows for the week ending Friday were the largest ever recorded. James Butterfill, CoinShares’ Head of Research, attributed these growing investments to a belated response to recently announced interest rate cuts by the Federal Open Market Committee (FOMC) amid deteriorating employment figures and worries regarding governmental stability due to the ongoing shutdown.

Crypto ETP flows by asset as of Friday (in millions of US dollars). Source: CoinShares

As a result of this inflow surge, the cumulative assets under management for crypto funds have now surpassed $250 billion, reaching an all-time high of $254.4 billion. Notably, while Bitcoin funds attracted the bulk of the recent inflows, corresponding ETPs for Ether also saw significant movement, totaling $1.48 billion.

However, there are concerns regarding delays in potential ETF approvals at the SEC due to operational shutdowns. According to Eleanor Terrett of Crypto in America, the SEC can still act on critical fraud and market emergency situations, but regular operations are expected to face disruptions.

Eric Balchunas from Bloomberg commented, “It’s like a rain delay.”

In response to the growing demand, Grayscale Investments, the second-largest US crypto ETF provider, launched the first US-listed spot crypto ETPs, which facilitate staking. The new products offer investors staking rewards alongside market performance gains.