Bitcoin News Today: Institutional Investors Pour $3.2B into Crypto ETPs Amid Turbulence

Bitcoin and Ethereum exchange-traded products (ETPs) attracted $3.2 billion in inflows last week despite a severe market correction triggered by U.S. President Donald Trump's announcement of 100% tariffs on Chinese imports, according to data from CoinShares and SoSoValue. The flash crash on October 10 saw Bitcoin plummet from $116,000 to under $110,000 within minutes, erasing $19 billion in leveraged positions and marking the largest single-day liquidation event in crypto history Cointelegraph^[1].

Bitcoin ETPs led the inflow surge, with net inflows exceeding $2.7 billion for the week, bringing year-to-date inflows to $30.2 billion. BlackRock's iShares Bitcoin Trust (IBIT), the largest crypto ETP with $94 billion in assets under management, accounted for a significant portion of the inflows Benzinga^[2]. Ethereum ETPs added $338 million in net inflows, though they faced $172 million in outflows on the crash's worst day, signaling heightened sensitivity to market volatility Forbes^[3]. Altcoin ETPs, including Solana and XRP, saw reduced inflows compared to prior weeks, with Solana funds attracting $93.3 million and XRP products drawing $61.6 million Cointelegraph^[1].

The crash highlighted structural challenges for crypto ETPs. Bitcoin's 24-hour price drop of 4.7% occurred outside traditional trading hours, leaving ETF holders unable to hedge against losses due to their alignment with stock market operating hours. Tommy Doyle of Xapo Bank noted that institutional investors with direct Bitcoin accounts could access liquidity during the crash, underscoring the demand for 24/7 trading solutions Benzinga^[2]. CoinShares reported record weekly trading volumes of $53 billion, with $10.4 billion transacted on October 10 alone Cointelegraph^[1].

Despite the turmoil, crypto ETPs demonstrated resilience. Total year-to-date inflows reached $48.7 billion, surpassing 2024's total of $41.7 billion. BlackRock's Ethereum ETF (ETHA) saw $92 million in inflows on October 6, outpacing Grayscale's Ethereum staking ETFs, which raised under $33.5 million combined CoinCentral^[5]. Analysts attributed the inflows to growing institutional confidence, with Ethereum's price rebounding 4% to $4,707 post-crash and Bitcoin trading at $115,645 as of October 13 Cointelegraph^[1].

The SEC's ongoing review of altcoin ETF applications added regulatory uncertainty, though market participants interpreted the delays as procedural rather than rejection. Over 90 crypto ETF proposals await approval, with Nate Geraci of NovaDius Wealth Management predicting a "flood" of launches post-government shutdown . Bloomberg Intelligence's James Seyffart cautioned that while demand exists for diverse crypto ETPs, niche altcoin funds may face closures due to insufficient liquidity .