Cryptocurrency investment products held steady amid last Friday’s massive flash crash, recording strong inflows over the past week.
Crypto exchange-traded products (ETPs) recorded $3.17 billion in inflows last week despite the market correction caused by fresh China tariff threats from US President Donald Trump, CoinShares reported on Monday.
“Friday saw little reaction with a paltry $159 million outflows,” CoinShares head of research James Butterfill wrote, highlighting crypto funds’ resilience to the market panic amid the Friday sell-off and $20 billion liquidations.
In addition to robust weekly inflows, crypto funds reached a new milestone by surpassing total inflows recorded last year, climbing to $48.7 billion year-to-date.
Trading volumes hit new highs amid Friday’s bloodbath
CoinShares also reported a new all-time high in weekly trading volumes for crypto funds, which surged to $53 billion, including $15.3 billion on Friday alone.
On the other hand, total assets under management (AUM) tumbled in the past week, declining from $254 billion recorded in the previous week to $242 billion.
Bitcoin (BTC) funds led inflows at $2.7 billion over the week, bringing YTD inflows to a new high of $30.2 billion, but still about 30% down from last year’s total of $41.7 billion.
Crypto ETP flows by asset as of Friday (in millions of US dollars). Source: CoinShares
“Volumes on Friday’s price correction were the highest on record at $10.4 billion for the day, while flows on Friday were only $0.39 million,” CoinShares’ Butterfill noted.
Ether funds hit with the largest outflows
Although Ether (ETH) investment products recorded $338 million in net inflows last week, they also experienced the largest single-day outflows among major crypto assets on Friday, totaling $172 million.
Butterfill suggested that investors viewed Ether funds as the “most vulnerable” during the market correction.
Daily inflows in spot Ether exchange-traded funds (ETFs) last week. Source: SoSoValue
Meanwhile, altcoin investment products saw a marked slowdown. Solana (SOL) funds attracted $93.3 million, and XRP (XRP) products drew $61.6 million, both down sharply from the prior week’s $706.5 million and $219 million, respectively.
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Butterfill mentioned that the slowdown in SOL and XRP inflows came despite the growing hype around the upcoming SOL and XRP ETF launches in the US.
As the US enters its third week of shutdown, at least 16 crypto ETFs await approval should the shutdown continue into November.
According to ETF analyst and NovaDius Wealth Management president Nate Geraci, the industry is set for a “flood” of spot crypto ETFs once the government shutdown ends.
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