Crypto investment products globally saw over $3 billion flow in last week. This happened even as market chaos brewed. The reason for the turmoil was a historic wave of liquidations, sparked by former President Donald Trump’s threat of 100% tariffs on goods from China.
More than $3 billion streamed into global crypto investment products last week. This happened despite a dramatic dip in cryptocurrency prices. Friday saw major sell-offs. The trigger was Trump’s tariff announcement. These inflows suggest that big institutional investors are confident in the market.
A report from CoinShares on Monday showed these investment products, also called ETPs, brought in $3.17 billion. This includes new spot Bitcoin and Ethereum exchange-traded funds (ETFs). Big names like BlackRock, Bitwise, Fidelity, and Grayscale manage these funds. The total money invested this year has hit a record $48.7 billion. This record stands despite the sharp price drop at the end of last week.
Positive Flows for US Bitcoin ETFs
Most of the money went into Bitcoin-related products. US spot Bitcoin ETFs, a key driver for institutional growth, took in $2.7 billion during the week. This information comes from the analysis firm SoSoValue.
The week was mostly positive for these funds. The only exception was Friday, the day of the market crash. On that day, they saw small outflows of $4.5 million. Globally, Bitcoin-based products led the way with $2.67 billion in inflows. This pushed the year’s total to $30.2 billion. This is still below the $41.7 billion recorded for all digital assets in 2024.
James Butterfill, CoinShares’ Head of Research, noted this. He said, “Despite the significant price correction caused by US tariff threats to China, Friday showed little reaction.” He pointed to “modest outflows of $159 million” but also record trading volumes that day.
Ethereum and Altcoins Also Saw Money Come In
US spot Ethereum ETFs also attracted a decent amount of money. They saw $488.2 million flow in during the week. However, the late-week sell-offs cut into this. Thursday saw $8.5 million leave these funds. Friday’s outflows were even bigger, at $174 million, matching the price drop.
Globally, Ethereum products added $338.3 million. Their year-to-date total is almost $14 billion, according to CoinShares. The report also mentioned other digital assets. Solana (SOL) and XRP saw investments of $93.3 million and $61.6 million, respectively. These flows were slower, with investors waiting for potential US ETF launches.
Most of the money went to the US, with $3.01 billion in inflows. Switzerland was next with $132 million, then Germany with $53.5 million. On the other hand, Sweden, Brazil, and Hong Kong saw money leave. The total assets managed fell 7% from the previous week’s high. It now stands at $242 billion.
Friday’s Wild Ride: Record Liquidations
The confidence of investors stood out against Friday’s market madness. The cryptocurrency market saw its biggest liquidation event ever. Almost $20 billion in both long and short positions were closed in just 24 hours.
Bitcoin, the largest cryptocurrency, saw a huge price drop. It lost nearly $17,000 in value in hours. At one point, it traded below $105,000.
The market moved so wildly that trading volumes for global digital asset ETPs reached a weekly record of $53 billion. Friday alone marked the highest daily volume ever, the report stated.
The panic started when President Donald Trump announced 100% tariffs on China. This brought back fears of a trade war between the two nations. It caused investors to pull back from risky assets in financial markets worldwide. Cryptocurrencies were no different.
Trump’s announcement has since been clarified. The crypto market is now showing signs of getting better. Bitcoin, for example, traded above $114,000 on Monday. It showed a small 1% gain by the time this was written.
Despite the historic market correction, over $3 billion still flowed into crypto investment products. This shows that institutional investors truly believe in these assets. They seem to see price drops as a chance to buy more. This kept weekly inflows firmly in positive territory.