Crypto funds just recorded $5.95 billion in weekly inflows, the highest ever. Government shutdown concerns driving the flow.

Crypto funds just recorded $5.95 billion in weekly inflows, the highest ever for digital asset investment products, according to CoinShares. That’s about 35 percent higher than the previous record of $4.4 billion from mid-July.

James Butterfill from CoinShares said the surge reflects a delayed reaction to the Federal Reserve’s rate cut, weaker U.S. jobs data, and renewed concerns about government stability after the shutdown. Investors appear to be rotating toward crypto amid broader uncertainty.

The rally coincided with Bitcoin hitting a new all-time high above $125,000. Bitcoin dominated inflows with $3.55 billion, setting its own record, while Ethereum saw $1.48 billion, Solana $706 million, and XRP $219 million.

Total assets under management in crypto funds crossed $250 billion for the first time, reaching $254 billion. That signals institutional capital is not just entering but staying.

The SEC’s partial shutdown could slow ETF reviews, but analysts compared it to a “rain delay” rather than a full halt. Meanwhile, product development continues globally, several issuers launched new ETH-based funds even as U.S. regulators paused routine work.

The mix of record inflows, political tension, and ongoing fund launches highlights a familiar pattern: during periods of uncertainty, capital often moves toward decentralized assets like Bitcoin and Ethereum, seen as stores of value outside traditional systems.