Institutional investors bought more Bitcoin, Ethereum, and XRP last week, with crypto funds recording another week of net inflows. This provides a bullish outlook for these crypto assets, especially as they look to bounce from last week’s crash.
Institutional Investors Accumulate Bitcoin, Ethereum, and XRP
CoinShares’ report revealed that Bitcoin, Ethereum, and XRP saw net inflows of $2.67 billion, $338 million, and $61.6 million, respectively. This came as crypto funds recorded $3.17 billion in inflows last week, bringing their year-to-date (YTD) inflows to $48.7 billion. Specifically, BTC, ETH, and XRP now have YTD inflows of $30.2 billion, $13.9 billion, and $1.8 billion, respectively.
Meanwhile, the increased inflows into Bitcoin and Ethereum over XRP last week mark a turnaround, as these institutions at some point accumulated more XRP than the top two cryptos by market cap. This was the case two weeks ago when XRP saw a net inflow of $93.1 million while BTC and ETH recorded outflows of $719 million and $409.4 million, respectively.
The net inflows into Bitcoin, Ethereum, and XRP last week came despite the crypto market crash triggered by Donald Trump’s announcement of 100% tariffs on China. CoinShares revealed that there was little reaction to the development, as crypto funds saw about $159 million in outflows on Friday when Trump announced it.
CoinShares also noted that, despite the hype around upcoming XRP ETF launches, inflows into XRP funds have slowed, as institutional investors pay more attention to Bitcoin and Ethereum. Notably, BTC and ETH have seen more inflows since the U.S. government shutdown began. Institutional investors are believed to be moving into Bitcoin, especially as a safety net amid macro uncertainty, a trade which has been described as the ‘debasement trade.’
The increased inflows into the Bitcoin funds were one of the factors that contributed to a rally to a new all-time high (ATH) above $126,000 earlier this month. However, BTC has since lost all these gains thanks to the tariff announcement last week.
BTC and ETH Start This Week With Outflows
SoSoValue data shows that the Bitcoin and Ethereum ETFs have started this week with outflows, possibly stemming from last week’s tariff announcement. The BTC ETFs recorded $326.52 million in daily net outflows on October 13. BlackRock was the only fund issuer that recorded inflows on the day, taking in $60.36 million.
Meanwhile, the ETH ETFs recorded daily net outflows of $428.52 million. BlackRock’s ETH fund recorded the largest outflows, with $310.13 million flowing out of the fund. Other funds also recorded outflows or zero flows. If the trend sustains, it could present a setback for these crypto assets as they look to bounce from last week’s market crash.
