Crypto funds’ inflow streak ended abruptly as BTC outflows outweighed ETH and altcoin gains, reflecting a split sentiment between cautious onchain investors and resilient institutional ETP traders.
Cryptocurrency investment funds have hit a setback, ending their two-week inflow streak as investors reacted to crypto’s recent “Black Friday” market crash.
According to CoinShares, digital asset investment products recorded $513 million in outflows last week, breaking a two-week streak that brought in over $9.1 billion. The reversal follows the “Binance liquidity cascade” on Oct. 10, which triggered panic across the spot market.
ETP Traders Remain Calm — Onchain Investors Turn Bearish
Despite the turbulence, exchange-traded product (ETP) investors remained relatively steady. James Butterfill, head of research at CoinShares, noted that ETP traders largely “shrugged off” the event, while onchain investors were notably more bearish and quick to exit positions.
Bitcoin (BTC) bore the brunt of the outflows, totaling $946 million, dragging year-to-date inflows down to $29.3 billion — well below last year’s $41.2 billion.
In contrast, Ether (ETH) funds saw significant buying activity, attracting $205 million in inflows, with leveraged Ether ETPs contributing an impressive $457 million as investors capitalized on the dip.
Other assets such as Solana (SOL) and XRP continued to shine, posting $156 million and $74 million in inflows respectively, driven by optimism surrounding new ETP launches. Solana inflows surged 67% week-over-week, making it one of the top-performing altcoin funds.
Market Fear Rises to Multi-Month Highs
The Crypto Fear & Greed Index dropped to 22 last Friday — its lowest since April — signaling deep “fear” among investors. Bitcoin’s dip below $105,000 amplified the cautious sentiment.
As of Monday, the index slightly recovered to 29, while Bitcoin traded near $111,000, down 3% weekly, and Ether hovered at $4,035, down 9% over the past month.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.