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    Crypto ETPs Attract $3.2B in Investments Despite Friday’s Sudden Market Drop

    Ethan CarterBy No Comments3 Mins Read
    Crypto ETPs Attract $3.2B in Investments Despite Friday’s Sudden Market Drop

    Investment in cryptocurrency products remained stable despite last Friday’s significant flash crash, showing robust inflows throughout the past week.

    Crypto exchange-traded products (ETPs) attracted $3.17 billion in inflows last week, undeterred by the market dip triggered by new tariff threats from US President Donald Trump, according to a report by CoinShares released on Monday.

    “On Friday, we witnessed minimal response with only $159 million in outflows,” stated James Butterfill, CoinShares’ head of research, emphasizing the resilience of crypto funds amidst the market panic following the Friday sell-off and $20 billion in liquidations.

    Along with strong weekly inflows, crypto funds hit a new record, surpassing last year’s total inflows to reach $48.7 billion year-to-date.

    Trading volumes soared amid Friday’s turmoil

    CoinShares also reported a record high in weekly trading volumes for crypto funds, which jumped to $53 billion, including a staggering $15.3 billion on Friday alone.

    However, total assets under management (AUM) fell over the past week, decreasing from $254 billion to $242 billion.

    Bitcoin (BTC) funds led the inflows with $2.7 billion for the week, pushing year-to-date inflows to a new high of $30.2 billion, although still approximately 30% lower than last year’s total of $41.7 billion.

    0199dcf1 ec69 75e1 b55e c5e522f75cb3
    Crypto ETP flows by asset as of Friday (in millions of US dollars). Source: CoinShares

    “The trading volumes during Friday’s price drop were unprecedented, reaching $10.4 billion for the day, while net flows were just $0.39 million,” Butterfill remarked.

    Ether funds face the largest outflows

    Ether (ETH) investment products recorded $338 million in net inflows last week, but also witnessed the most significant single-day outflow among major crypto assets on Friday, amounting to $172 million.

    Butterfill noted that investors perceived Ether funds as the “most vulnerable” during the market downturn.

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    Daily inflows in spot Ether exchange-traded funds (ETFs) last week. Source: SoSoValue

    In contrast, altcoin investment products experienced a noticeable slowdown. Solana (SOL) funds attracted $93.3 million, and XRP (XRP) products drew $61.6 million, both significantly lower than the previous week’s $706.5 million and $219 million, respectively.

    Related: Luxembourg sovereign wealth fund invests in Bitcoin ETFs with a 1% stake

    Butterfill pointed out that the decline in SOL and XRP inflows occurred despite increasing excitement surrounding upcoming SOL and XRP ETF launches in the US.

    With the US now in its third week of government shutdown, at least 16 crypto ETFs are awaiting approval if the shutdown extends into November.

    According to Nate Geraci, an ETF analyst and president of NovaDius Wealth Management, the industry is poised for a “flood” of spot crypto ETFs once the government shutdown concludes.