Bitcoin funds experienced nearly $1 billion in outflows last week following a tariff-driven market crash on October 10, primarily affecting U.S.-listed products. However, European investors drove inflows into Ethereum, Solana, and XRP, signaling a rotation to altcoins amid heightened exchange-traded product activity.
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Bitcoin outflows reached $946 million, linked to U.S. President Donald Trump’s tariff threat on Chinese goods.
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Ethereum funds saw $205 million in net inflows as investors bought the dip.
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Solana and XRP exchange-traded products attracted $156 million and $93.9 million respectively on their U.S. launch, boosting altcoin interest with data from CoinGecko showing SOL at $192.41 and XRP at $2.46.
Bitcoin funds outflows hit $1B after tariff crash: Ethereum, Solana, XRP see inflows as Europe buys dip. Discover key insights on crypto market rotation. Stay updated on digital assets—subscribe now! (152 characters)
What Caused the Recent Bitcoin Funds Outflows After the Tariff-Driven Crash?
Bitcoin funds outflows surged to nearly $1 billion last week, triggered by a liquidity cascade on October 10 amid threats from U.S. President Donald Trump to impose 100% tariffs on Chinese goods. This event led to widespread selling in U.S.-listed Bitcoin products, with outflows totaling $946 million according to a CoinShares report. Despite Bitcoin trading at $111,016 after a 2.9% daily gain, it remained 3.2% below last week’s levels and 4.2% down from a month ago, per CoinGecko data.
How Did Ethereum, Solana, and XRP Perform Amid the Bitcoin Sell-Off?
Ethereum demonstrated resilience, gaining 1.9% in the past day to trade at $4,036.65, only 3.3% lower than the previous week. This performance aligned with $205 million in net inflows to Ethereum funds, as dip-buyers shifted focus from Bitcoin. Solana rose 1% to $192.41, while XRP climbed 2.6% to $2.46, supported by the debut of U.S.-based options on the CME exchange last week.
James Butterfill, head of research at CoinShares, highlighted in their report that outflows were predominantly U.S.-focused, contrasting with inflows from Germany, Switzerland, and Canada totaling significant dip-buying activity. Exchange-traded product (ETP) trading volume hit $51 billion last week—nearly double the 2025 yearly average—indicating sustained investor interest despite the volatility.
Solana and XRP ETPs drew strong debut inflows of $156 million and $93.9 million, respectively, fueled by launch excitement. However, broader sentiment for Solana remains cautious; prediction markets like Myriad, operated by Dastan, show a 36.3% chance of Solana reaching a new all-time high by year-end. Butterfill noted the October 10 crash’s impact was muted in ETPs compared to on-chain liquidations, as it occurred after markets closed on Friday.
Overall net outflows post-event reached $668 million in the ETP space, suggesting institutional investors largely dismissed the tariff threat’s immediate effects, unlike more reactive on-chain traders. This rotation underscores a diversifying strategy among global investors, with European markets providing a stabilizing force.
Frequently Asked Questions
What Impact Did Trump’s Tariff Threat Have on Bitcoin Prices?
Trump’s announcement of potential 100% tariffs on Chinese goods on October 10 sparked a liquidity cascade, causing Bitcoin to drop sharply and leading to $946 million in fund outflows. Prices have since recovered to $111,016, but remain down 3.2% weekly and 4.2% monthly, reflecting ongoing U.S. market sensitivity per CoinGecko statistics.
Why Are Investors Rotating into Ethereum, Solana, and XRP After the Crash?
Investors are buying the dip in altcoins like Ethereum, Solana, and XRP due to perceived undervaluation and new product launches, such as CME options. Ethereum saw $205 million in inflows, while Solana and XRP ETPs attracted over $250 million combined on debut, driven by European inflows and elevated trading volumes of $51 billion last week, as reported by CoinShares.
Key Takeaways
- U.S.-Centric Outflows: Bitcoin funds lost $946 million, highlighting vulnerability to geopolitical events like tariff threats.
- Altcoin Resilience: Ethereum inflows of $205 million and strong Solana/XRP debuts show investor rotation amid global buying from Europe.
- Elevated Market Activity: ETP trading doubled the 2025 average to $51 billion, signaling confidence despite $668 million net outflows post-crash—monitor official data from sources like CoinGecko for ongoing trends.
Conclusion
The recent Bitcoin funds outflows of nearly $1 billion following the tariff-driven crash on October 10 underscore the cryptocurrency market’s sensitivity to U.S. policy shifts, yet the rotation into Ethereum, Solana, and XRP—bolstered by $205 million in Ethereum inflows and robust European participation—highlights growing diversification. As exchange-traded products maintain elevated volumes at $51 billion weekly, per CoinShares analysis, investors appear poised for recovery. COINOTAG, as a trusted source in digital asset reporting, recommends tracking official statistics from platforms like CoinGecko for informed decisions. Looking ahead, this event may catalyze broader adoption of altcoins in 2025—stay engaged with our updates for the latest developments.
Published: October 17, 2025 | Updated: October 17, 2025 | Author: COINOTAG
