Last Friday, cryptocurrency markets encountered a significant correction, yet crypto investment products showed remarkable endurance, amassing $3.2 billion in inflows.

Notably, crypto exchange-traded products (ETPs) witnessed a substantial influx of $3.17 billion despite the correction attributed to new tariff threats from the U.S. government. Head of Research at CoinShares, James Butterfill, remarked:

“Friday saw little reaction with a paltry $159 million outflows,” indicating the resilience of crypto funds amid market panic which followed the sell-off.

In the wake of strong weekly inflows, crypto funds surpassed last year’s total inflows, now standing at $48.7 billion year-to-date.

Record Trading Volumes Amid Distress

CoinShares also noted that weekly trading volumes for crypto funds peaked at $53 billion, with $15.3 billion traded on Friday alone. However, total assets under management (AUM) fell from $254 billion to $242 billion in the same week.

Bitcoin (BTC) funds led the way with $2.7 billion in weekly inflows, raising year-to-date figures to $30.2 billion, which is approximately 30% down from the previous year’s total of $41.7 billion.

Crypto ETP flows by asset as of Friday (in millions of US dollars). Source: CoinShares

“Volumes during Friday’s price correction were the highest on record at $10.4 billion for the day, while flows were only $0.39 million on that day,” noted Butterfill.

Ether Funds Experience Significant Outflows

Despite $338 million in net inflows last week, Ether (ETH) products faced the highest outflow, with $172 million leaving on Friday.

Butterfill suggested that investors considered Ether funds as the most vulnerable during the recent market downturn.

Daily inflows in spot Ether (ETFs) last week. Source: SoSoValue

Meanwhile, altcoin investment products experienced a significant slowdown, with Solana (SOL) attracting $93.3 million and XRP gathering $61.6 million, a stark contrast to previous weeks.
Butterfill pointed out that despite this cooling trend, there is an upswing in anticipation for upcoming SOL and XRP ETF launches in the U.S.

As the U.S. navigates its third week of federal shutdown, at least 16 crypto ETFs are pending approval, contingent upon the situation continuing into November.

According to ETF analyst Nate Geraci, the industry might witness a “flood” of spot crypto ETFs once governmental operations resume.