Cryptocurrency-based funds attracted $3.17 billion in new capital at the same time as markets have been reeling from U.S.-China tariff tensions, in response to CoinShares’ weekly report.
On October 10, President Donald Trump introduced that america could elevate tariffs in response to China’s new uncommon earth export restrictions.
This assertion triggered a big decline in danger property total, resulting in a drop in cryptocurrency costs and an outflow of roughly $159 million from digital asset funding merchandise on the day.
Notably, this correction resulted in roughly $20 billion price of liquidations from crypto merchants holding leveraged positions out there.
On the similar time, the sharp financial downturn worn out crypto funding property beneath administration (AUM) by 7%, dropping to $242 billion.
However the identical announcement fueled a document buying and selling frenzy.
Based on CoinShares, the day by day buying and selling quantity of the cryptocurrency ETP reached $15.3 billion throughout Friday’s buying and selling session. This brings the overall weekly buying and selling quantity of those merchandise to $53 billion, double this yr’s common.
These numbers highlighted a rising development. Traders are more and more turning to regulated cryptocurrency funds as a hedge in opposition to short-term volatility. This positioning has continued all year long, with complete inflows exceeding $48.7 billion in 2025.
Bitcoin guidelines the market
Bitcoin stays a transparent beneficiary of inflows from institutional buyers, attracting $2.67 billion final week, taking its year-to-date complete to $30.2 billion.
Based on CoinShares, this milestone was achieved regardless of modest Bitcoin inflows of $390,000 on October 10, in sharp distinction to the truth that on the identical day, Bitcoin’s day by day quantity hit an all-time excessive of $10.4 billion.
In the meantime, Ethereum, the second-largest crypto asset, was a laggard, recording $338 million in inflows after $172 million in withdrawals through the October 10 selloff.
CoinShares famous that this reversal alerts lingering warning as buyers view Ethereum as uncovered to short-term market shocks.
Nonetheless, ETH’s complete flows this yr are at the moment round $14 billion, with property beneath administration hovering round $36 billion.
In the meantime, the financial slowdown unfold to different main digital property akin to Solana and XRP, which collected $93.3 million and $61.6 million, respectively.
Regardless of expectations relating to future ETF approvals, investor enthusiasm for these merchandise seems to have cooled.
This means that buyers are concentrating their funds round Bitcoin as danger urge for food wanes.
