Bitcoin ETF Inflows of $2.6B May Have Helped Push Crypto ETP Flows Past Last Year’s Total Amid Friday Sell-Off

Published: 2025-10-13 | Updated: 2025-10-13 | Author: COINOTAG

• $3.17B inflows last week: $2.6B to Bitcoin ETFs, $338M to Ethereum ETFs.

• Weekly ETP volumes hit a record $53B; Friday recorded the largest single-day volume at $15.3B.

• Year-to-date crypto fund flows reached $48.7B; total assets under management fell to $242B after the tariff announcement.

Bitcoin and Ethereum ETFs drew $3.17B last week, lifting YTD crypto fund flows to $48.7B. Read concise expert analysis and investor guidance from COINOTAG.

What happened with Bitcoin and Ethereum ETF inflows last week?

Bitcoin and Ethereum ETFs pulled in a combined $3.17 billion in net new deposits last week, with Bitcoin funds receiving $2.6 billion and Ethereum funds $338 million. The inflows pushed year-to-date crypto exchange-traded product (ETP) deposits to a record $48.7 billion, even as markets experienced a flash sell-off on Friday.

How did Friday’s sell-off affect ETF holdings and flows?

Friday’s downturn produced only modest ETF outflows—about $159 million—suggesting the bulk of selling pressure came from leveraged institutional positions rather than retail ETP holders. CoinShares Head of Research James Butterfill noted that retail ETP holders tend to be “stickier,” while institutional traders engaging in basis trades are more likely to be washed out during sharp moves. Weekly volumes on digital asset ETPs reached a record $53 billion, with Friday’s $15.3 billion the largest daily volume on record. Total assets under management declined to $242 billion following the tariff announcement, a 7% drop from the prior week’s peak.



Why did prices move so sharply and who bore the brunt?

Market structure and leverage were central to the sharp intraday moves. According to Marcin Kazmierczak, co‑founder of RedStone, leveraged traders on perpetual contracts on centralized exchanges suffered the largest losses as forced liquidations cascaded. He reported that the total cryptocurrency market capitalization briefly fell from roughly $4.3 trillion to about $2.7 trillion—erasing nearly $600 billion in nominal market value—and that collateral values plunged, triggering mass liquidations. Decentralized exchanges and on‑chain DeFi saw less severe impact, Kazmierczak added, because major oracles such as Chainlink and RedStone continued reporting aggregated price feeds and because on‑chain positions held less leverage overall.

Frequently Asked Questions

How much did Bitcoin ETFs attract last week compared to Ethereum ETFs?

Bitcoin ETFs attracted approximately $2.6 billion in net new inflows last week, while Ethereum ETFs saw roughly $338 million in deposits, representing the bulk of the combined $3.17 billion that flowed into crypto ETPs during the period.

Did retail investors sell their ETF holdings during the crash?

Evidence suggests retail holders were largely not the primary sellers. CoinShares research and market flow patterns indicate institutional basis traders—who use leveraged long spot/short futures strategies—are more likely to generate the rapid outflows seen in stressed markets, while retail ETP investors typically hold positions longer.

Key Takeaways

• Record year-to-date inflows: Crypto ETPs have reached $48.7 billion in YTD deposits, surpassing last year’s total.
• Market volatility driven by leverage: Centra­lized exchange perpetual contracts and basis trades amplified Friday’s sell-off, leading to large liquidation cascades.
• Investor implication: Stickier retail ETP demand supports the view that institutional flows and leverage remain key drivers of short-term volatility; consider liquidity and counterparty risk when allocating exposure.

Conclusion

Last week’s net inflows—$3.17 billion into Bitcoin and Ethereum ETFs—underscore robust demand for regulated crypto ETPs even amid episodic volatility. Official data and market commentary from CoinShares, CoinGecko, RedStone, and market participants point to institutional leverage as the primary catalyst for the flash crash, while retail ETP holders remained comparatively stable. For investors, the episode highlights both the growing mainstream adoption of Bitcoin and Ethereum ETFs and the ongoing importance of managing leverage and liquidity risk. For ongoing coverage and data-driven updates, follow COINOTAG’s market briefs and fund flow reports.

Data and sources referenced (plain text): CoinShares report; CoinGecko price data; quotes from James Butterfill (CoinShares) and Marcin Kazmierczak (RedStone); prediction-market activity from Myriad (Dastan); oracle references to Chainlink and RedStone.