Cryptocurrency-based funds attracted $3.17 billion in new capital even as markets were reeling from U.S.-China tariff tensions, according to CoinShares’ weekly report.
On October 10, President Donald Trump announced that the United States may raise tariffs in response to China’s new rare earth export restrictions.
This statement triggered a significant decline in risk assets overall, leading to a drop in cryptocurrency prices and an outflow of approximately $159 million from digital asset investment products on the day.
Notably, this correction resulted in approximately $20 billion worth of liquidations from crypto traders holding leveraged positions in the market.
At the same time, the sharp economic downturn wiped out crypto investment assets under management (AUM) by 7%, dropping to $242 billion.
But the same announcement fueled a record trading frenzy.
According to CoinShares, the daily trading volume of the cryptocurrency ETP reached $15.3 billion during Friday’s trading session. This brings the total weekly trading volume of these products to $53 billion, double this year’s average.
These numbers highlighted a growing trend. Investors are increasingly turning to regulated cryptocurrency funds as a hedge against short-term volatility. This positioning has persisted throughout the year, with total inflows exceeding $48.7 billion in 2025.
Bitcoin rules the market
Bitcoin remains a clear beneficiary of inflows from institutional investors, attracting $2.67 billion last week, taking its year-to-date total to $30.2 billion.
According to CoinShares, this milestone was achieved despite modest Bitcoin inflows of $390,000 on October 10, in sharp contrast to the fact that on the same day, Bitcoin’s daily volume hit an all-time high of $10.4 billion.
Meanwhile, Ethereum, the second-largest crypto asset, was a laggard, recording $338 million in inflows after $172 million in withdrawals during the October 10 selloff.
CoinShares noted that this reversal signals lingering caution as investors view Ethereum as exposed to short-term market shocks.
Still, ETH’s total flows this year are currently around $14 billion, with assets under management hovering around $36 billion.
Meanwhile, the economic slowdown spread to other major digital assets such as Solana and XRP, which collected $93.3 million and $61.6 million, respectively.
Despite expectations regarding future ETF approvals, investor enthusiasm for these products appears to have cooled.
This suggests that investors are concentrating their funds around Bitcoin as risk appetite wanes.