Bitcoin News Today: Institutions Bet Big on Bitcoin as Trump's Tariff Storm Sparks $3.2B Crypto Inflows

Generated by AI AgentCoin World
Monday, Oct 13, 2025 6:38 am ET2min read
Aime RobotAime Summary

- CoinShares reports $3.17B net inflows into crypto ETPs despite $19B liquidations during Trump's tariff-driven October 10 flash crash.

- Bitcoin funds led with $2.7B weekly inflows, while Ethereum faced $172M single-day outflows amid 12% price drop.

- Altcoins saw mixed results (Solana/XRP down sharply) as Trump's trade threats and China's rare earth restrictions triggered $20B+ leveraged liquidations.

- BlackRock's IBIT attracted inflows during turmoil, highlighting Bitcoin's institutional preference as crypto ETP AUM reached $242B.

Despite a historic flash crash wiping $19 billion in crypto liquidations on October 10, 2025, crypto ETPs (exchange-traded products) attracted $3.17 billion in net inflows for the week, according to CoinShares. This resilience occurred amid heightened volatility triggered by U.S. President Donald Trump's surprise 100% tariff threat on Chinese imports, which sent

Bitcoin
and
Ethereum
plummeting.

Bitcoin funds led the inflow surge, drawing $2.7 billion for the week, lifting year-to-date inflows for BTC products to $30.2 billion. Ether funds recorded $338 million in net inflows, though they faced the largest single-day outflows of $172 million on October 10. Altcoin funds saw mixed results, with

Solana
and
XRP
attracting $93.3 million and $61.6 million, respectively, down sharply from the prior week's $706.5 million and $219 million.

The flash crash, which saw over $20 billion in leveraged positions liquidated within 24 hours, was driven by Trump's trade-war escalation and China's export restrictions on rare earth minerals. Bitcoin's price dropped from a peak of $126,000 to under $107,000 within hours, while Ethereum fell over 12%. Despite the turmoil, total crypto ETP assets under management (AUM) reached $242 billion as of October 13, down from $254 billion the prior week due to price corrections.

Trading volumes surged to record levels, with CoinShares reporting $53 billion in weekly trading activity, including $15.3 billion on October 10 alone. James Butterfill, CoinShares' head of research, noted that Friday's inflows were minimal at $159 million, underscoring the separation between trading volume and net capital flows during the panic.

The U.S. government shutdown, now in its third week, has further complicated the market. Over 90 crypto ETF applications are pending SEC approval, including 10 for Solana and nine for XRP. Analysts like Nate Geraci of NovaDius Wealth Management anticipate a "flood" of approvals once the shutdown ends, potentially unlocking $5–10 billion in institutional inflows. However, prolonged delays risk cooling institutional enthusiasm and delaying mainstream adoption.

BlackRock's IBIT fund, the largest crypto ETF, saw inflows during the crash while Ethereum ETFs faced $175 million in outflows. Institutional investors appeared to favor Bitcoin as a safer asset amid volatility, with BlackRock purchasing $74.2 million worth of Bitcoin on October 10.

The crash exposed systemic vulnerabilities, including thin liquidity in altcoins and the limitations of 24/7 trading for ETFs bound by stock market hours. Tommy Doyle of Xapo Bank highlighted the need for institutional investors to access real-time liquidity outside traditional trading windows.

While the market stabilized over the weekend, the long-term outlook remains uncertain. Bitcoin's 365-day exponential moving average and its dominance in the crypto market (now 59.3%) are key indicators for investors. Charlie Erith of Wiston Capital emphasized that a sustained break below $100,000 could signal a deeper correction, though he remains defensively positioned without leverage.