Cryptocurrency exchange-traded products (ETPs) demonstrated resilience last week by attracting $3.17 billion in net inflows, despite experiencing a significant flash crash on Friday. This strong investor interest persisted even as the crypto market faced headwinds from renewed US-China tariff tensions and a Friday sell-off that triggered around $20 billion in liquidations.
According to a report released Monday by CoinShares, the market correction had limited impact on crypto fund flows, with only $159 million in outflows recorded during the flash crash. James Butterfill, CoinShares’ head of research, highlighted the sector’s ability to absorb selling pressure and maintain steady investor appetite throughout the turmoil.
Year-to-date inflows into crypto investment products have now reached $48.7 billion, surpassing the total inflows recorded over the entire previous year. This milestone underscores robust demand despite recent volatility in digital asset markets.
Friday’s heightened volatility also pushed trading volumes to new heights. Weekly turnover across crypto funds surged to an all-time high of $53 billion, with $15.3 billion trading volume occurring on Friday alone. However, total assets under management (AUM) for crypto ETPs declined from $254 billion the previous week to $242 billion, reflecting price corrections amid the market shakeout.
Bitcoin funds continue to dominate inflows
Bitcoin (BTC) investment products led the inflows with $2.7 billion over the past week, bringing the total year-to-date inflows to an unprecedented $30.2 billion. This progress, while notable, remains about 30% below last year’s total of $41.7 billion, suggesting cautious but sustained interest in the flagship crypto asset.
Despite record-breaking trading volumes on the flash crash day — reaching $10.4 billion — Friday saw negligible net fund flows, amounting to only $0.39 million, highlighting investors’ reluctance to move capital during volatile market swings.
Ether funds report mixed outcomes
Investment products focused on Ether (ETH) registered $338 million in net inflows last week. However, they faced the largest single-day outflows among major crypto assets during Friday’s sell-off, losing $172 million. Butterfill indicated that investors perceived Ether funds as more susceptible to downside risks during market corrections.
Altcoins show slower inflows
Altcoin-focused funds exhibited a slowdown compared to previous weeks. Solana (SOL) products attracted $93.3 million, while XRP funds gathered $61.6 million—significantly down from the $706.5 million and $219 million noted in the prior week, respectively. This decline occurred despite anticipation surrounding upcoming US listings of SOL and XRP ETFs.
As the US government enters its third week of shutdown, regulatory approvals for at least 16 pending crypto ETFs remain on hold. ETF analyst Nate Geraci of NovaDius Wealth Management predicts a surge in spot crypto ETF launches once the shutdown resolves.
Overall, these developments highlight the crypto investment sector’s ability to sustain capital inflows and trading activity even amid sharp price corrections and regulatory uncertainties.
