Despite turbulence across crypto markets, investors treated Ethereum’s weakness as a buying window. During the week, investment funds dedicated to ETH pulled in $205 million in inflows during the week. The strongest momentum came from a 2x leveraged ETP, which drew $457 million, which reflected continued confidence in Ethereum’s recovery.
This occurred even as digital asset funds experienced $513 million in overall outflows, following volatility linked to Binance’s liquidity cascade on October 10th. Cumulative outflows since that incident now stand at $668 million, which means that ETP investors largely brushed off the turmoil, unlike on-chain holders, who appeared more risk-averse.
Weekly ETP trading volumes surged to $51 billion, almost twice the year-to-date average, amidst steady institutional activity.
Altcoins Ride Ethereum Wave
According to the latest edition of CoinShares’ Digital Asset Fund Flows Weekly Report, Bitcoin dominated investor attention last week, and is the only major digital asset to record outflows, which reached $946 million. This brings year-to-date inflows to $29.3 billion, trailing behind the $41.7 billion seen in 2024. Even short-Bitcoin products saw minor withdrawals of $0.9 million.
CoinShares stated that these withdrawals are modest compared to prior corrections, indicating that selling pressure mainly stems from crypto-native investors rather than ETP holders. The recent market dip was triggered by US/China trade tariff announcements, which pose a greater risk to equities than digital assets. The asset manager explained that Bitcoin remains relatively “insulated,” with potential support from stress in US regional banks, echoing the March 2023 trend. Overall, bearish sentiment reflects external factors, but fundamentals for Bitcoin and digital assets remain solid.
On the other hand, altcoins followed Ethereum’s positive momentum and attracted capital inflows. Anticipation surrounding the upcoming Solana and XRP ETP launches fueled inflows of $156 million and $73.9 million, respectively. Meanwhile, Sui, Cardano, and Chainlink each gained $5.9 million, $3.7 million, and $1.8 million, while Litecoin added a modest $1 million.
Global Crypto Flows
The US accounted for the majority of withdrawals as it saw $621 million in outflows, alongside Sweden’s $54.2 million and Hong Kong’s $9.8 million. In contrast, investors in Germany, Switzerland, and Canada capitalized on the market dip, investing $54.2 million, $48 million, and $42.4 million, respectively.
Australia and Brazil also logged smaller inflows of $8.2 million and $6.9 million.
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