Following a notable liquidity shock on October 10, there was a significant outflow of $513 million from cryptocurrency-based investment products. Despite this, investors seized opportunities in Ethereum, Solana, and XRP, counteracting the selling pressure with robust purchases. While US-based investors experienced outflows, those in Europe and Canada turned the price drop into an investment opportunity, signaling varied regional responses in the market.
Investors Divest from Bitcoin
According to CoinShares’ 256th weekly report, last week saw total outflows of $513 million from cryptocurrency investment products. Post the liquidity crash on October 10, this amount rose to $668 million, yet investor interest remained unabated. The weekly trading volume reached $51 billion, doubling the yearly average. Particularly, the US witnessed $621 million in outflows, while Germany, Switzerland, and Canada registered inflows of $54.2 million, $48 million, and $42.4 million respectively.
Bitcoin remained the focal point for investors. Despite a $946 million outflow, net inflows into the largest cryptocurrency-based investment products this year fell to $29.3 billion from the $41.7 billion seen in the same period in 2024. However, risk appetite in other market segments stayed high.
Rise of Ethereum, XRP, and Solana
Conversely, Ethereum investors capitalized on the price drop. Inflows reached $457 million within 2x leveraged ETPs out of a total of $205 million, indicating market expectations of a strong mid-term recovery in Ethereum. Concurrently, Solana and XRP-based investment products also saw significant inflows of $156 million and $73.9 million respectively.
Interest in Ethereum, Solana, and XRP-backed ETPs is anticipated to strengthen with institutional-level access. CoinShares data reveal that despite sales in the US, European and Canadian investors stabilized the market with bottom-fishing approaches. The current scenario implies that despite regional disparities, the overall interest in the cryptocurrency market remains intact.