• Crypto ETPs saw $513 million in outflows, reversing a two-week inflow streak of $9.1 billion.
• Bitcoin’s $946 million outflows in crypto ETPs led to a decline in year-to-date inflows.
• Despite the downturn, Ethereum ETPs saw $205 million in inflows, showing investor confidence.

During the past week, the crypto exchange traded products (ETPs) market demonstrated a significant reversal, with $513 million worth of outflow. This marked a stark contrast to the inflow recorded during the previous two weeks, which accumulated to $9.1 billion. 

The reason for the reversal was a significant market downturn during what was termed the ‘Black Friday’ crash in the crypto market, as CoinShares reported on Monday. Inflow followed the ‘Binance liquidity cascade’ on October 10 when the market prices of crypto drastically decreased. According to CoinShares, after the event, total outflows reached $668 million. 

Crypto ETPs Prove Resilient as Bitcoin Struggles and Ethereum Surges

Despite the crash, the crypto ETP market demonstrated better resistance to the negative trend when compared to the spot market where losses were steeper. James Butterfill, CoinShares’ head of research, pointed out that in that regard, ETP investors displayed a calmer approach to changes promoted in the spot market. 

Also Read: CoinShares Seals $1.2 Billion Nasdaq Deal with Vine Hill to Expand in U.S.

Last week, Bitcoin reach new outflows records in crypto ETPs worth $946 million. This undermined the year-to-date inflows to $29.3 billion. Comparison with last year indicates that total inflows to date were cheaper $41.2 billion. These reveal Bitcoin’s volatility and incapacity to stabilize in the crypto market. 

Nonetheless, Ethereum remained relatively resistant to the market downturn, with ETPs accumulating inflows worth $205 million. In this regard, investors were buying due to the dip, demonstrating confidence in cryptocurrency’s future. The majority of inflows were observed in the 2x leveraged Ether ETP, amounting to $457 million. 

Source: CoinShares

Solana and XRP as well demonstrated positive movement, supported by new ETP launches, which fueled the optimism. Solana advanced by 67% in the amount of outflows relative to the past week, amounting to $156 million. XRP acquired $74 million, suggesting a steady inflow. 

Crypto Fear Surges as Crypto ETP Outflows Intensify

Outflows from crypto ETPs correlated with a relevant decline in Crypto Fear & Greed Index values. On Friday, the fear gauge dropped to 22, which has never been recorded since April. The index was as low as 29 on Monday, which indicated that fear continued to dominate the market. 

Source: Alternative

Currently, Bitcoin is standing at $111,013, which signifies a 3.91% drop during the past week and 4% decrease during the past month. On the other hand, Ethereum is trading at $3,984, which suggests 6.43% decline over the past week.These dynamics demonstrate the challenging context within the cryptocurrency market. 

Nevertheless, some analysts remain bullish about Ethereum and altcoins. Wary and speculative investors continue to enter the market. The market fear gauge is already below 29, but institutions and experienced traders expect it to continue deteriorating until long-term dynamics for Ethereum improve.

Also Read: XRP ETF Could Lead $18 Trillion Crypto Boom, Says CoinShares CEO