Cryptocurrency-based funds attracted $3.17 billion in new capital even as markets reeled from tariff-related tensions between the United States and China, according to weekly CoinShares report.
On October 10, President Donald Trump announced that the US could raise tariffs in response to China’s new export restrictions on rare earth metals.
The statement triggered a broad sell-off in risky assets, sending crypto prices lower and triggering outflows of about $159 million from digital investment products on the day.
Notably, the correction also caused approximately $20 billion in liquidations of crypto traders who held leveraged positions in the market.
At the same time, the sharp downturn has wiped out 7% of total assets under management (AUM) from crypto investments, reducing them to $242 billion.
Yet the same announcement also set off a record trading frenzy.
According to CoinShares, daily volumes of crypto ETPs peaked at $15.3 billion during Friday’s trading sessions. This has helped push total weekly volumes of these products to $53 billion, double the average for this year.
These figures indicated a growing trend: investors are increasingly turning to regulated crypto funds as a hedge against short-term volatility. This positioning has been maintained throughout the year, with total inflows exceeding $48.7 billion in 2025.
Bitcoin dominates the market
Bitcoin remained the clear beneficiary of institutional inflows, attracting $2.67 billion last week, bringing the year-to-date total to $30.2 billion.
According to CoinShares, this milestone came despite Bitcoin’s modest flows of $390,000 on October 10, which was in stark contrast to BTC posting its highest ever daily volume of $10.4 billion on the same day.
On the other hand, Ethereum, the second-largest crypto asset, lagged behind, posting $338 million in inflows after $172 million in withdrawals during the October 10 sell-off.
CoinShares noted that this reversal is a sign of continued caution, with investors viewing Ethereum as more exposed to short-term market shocks.
Still, total ETH flows for the year now stand at around $14 billion, while assets under management hover around $36 billion.
Meanwhile, the slowdown spread to other major digital assets such as Solana and XRP, which attracted $93.3 million and $61.6 million, respectively.
Despite expectations surrounding the upcoming ETF approval, investor enthusiasm for these products appears to have cooled.
This suggests that investor capital is consolidating around Bitcoin as risk appetite decreases.