Crypto-based funds attracted $3.17 billion in new capital, at the same time as markets reeled from tariff-related tensions between the USA and China, in line with CoinShares weekly report.
On Oct. 10, President Donald Trump introduced that the US might increase tariffs in response to China’s new rare-earth export restrictions.
The assertion triggered a broad sell-off throughout threat belongings, decreasing crypto costs and prompting outflows of about $159 million from digital-asset funding merchandise on the day.
Notably, the correction additionally triggered round $20 billion value of liquidations from crypto merchants holding leveraged positions available in the market.
On the similar time, the sharp downturn wiped 7% off crypto investments’ whole belongings underneath administration (AUM), slicing them to $242 billion.
But, the identical announcement additionally fueled a file buying and selling frenzy.
In response to CoinShares, crypto ETPs’ every day volumes peaked at $15.3 billion throughout Friday’s buying and selling classes. This helped push the full weekly volumes throughout these merchandise to $53 billion, which is double the common for this 12 months.
These numbers highlighted a rising pattern: traders are more and more turning to regulated crypto funds as a hedge in opposition to short-term volatility. This positioning has continued all year long, with whole inflows now exceeding $48.7 billion in 2025.
Bitcoin dominates market
Bitcoin remained the clear beneficiary of institutional inflows, attracting $2.67 billion final week, bringing its year-to-date whole to $30.2 billion.
In response to CoinShares, this milestone got here regardless of Bitcoin’s modest flows of $390,000 on Oct. 10, which contrasted sharply with the truth that BTC noticed its highest every day quantity ever recorded, $10.4 billion, on the identical day.
However, Ethereum, the second-largest crypto asset, lagged behind, posting $338 million in inflows after $172 million in withdrawals in the course of the Oct. 10 sell-off.
CoinShares famous that this reversal indicators lingering warning, with traders viewing Ethereum as extra uncovered to short-term market shocks.
Nonetheless, ETH’s whole flows for the 12 months now stand at roughly $14 billion, whereas its belongings underneath administration hover round $36 billion.
In the meantime, the slowdown prolonged to different main digital belongings, resembling Solana and XRP, which attracted $93.3 million and $61.6 million, respectively.
Regardless of expectations surrounding their upcoming ETF approvals, investor enthusiasm for these merchandise seems to have cooled.
This implies that traders’ capital is consolidating round Bitcoin as threat urge for food fades.