In the face of a wild market drop that saw almost $20 billion worth of liquidations, crypto funds came in big time as they experienced massive inflows of $3.17 billion in the last week. The inflow demonstrates a new-found resilience among investors and speaks volumes about confidence in the crypto market in the face of unprecedented volatility.
Crypto Funds Resilient During Liquidation Event
There was a historic liquidation day that impacted the crypto market on October 10, 2025, that impacted more than 1.6 million traders. Centralized exchanges (CEXs) were the focus as the transparency deficiency was uncovered. The event revealed serious failures in CEX business, which led to a shift of investor confidence into decentralized finance (DeFi) platforms.
Conversely, crypto funds rejected the trends in the market. In a CoinShares report, while overall assets under management decreased to $242 billion during the crash, inflows into top-rated crypto funds were still strong. This was experienced when only $159 million of outflows were witnessed on the same day, testifying to a strong investor base.
Bitcoin Leads the Charge in Inflows
Bitcoin (BTC) was the leader as the main source of these inflows, with $2.7 billion on the week. That leaves year-to-date Bitcoin inflows at $30.2 billion, although it remains about 30% behind last year’s pace at $41.7 billion. The consistent demand for Bitcoin saw weekly volumes hit an all-time high of $53 billion, including a record $15.3 billion on the day of the crash.
Ether (ETH) also experienced inflows, to the value of $338 million for the week. It did experience the biggest one-day outflow of $174.83 million on October 10, however. Investors considered Ether funds most at risk during the decline, said CoinShares’ Head of Research, James Butterfill.
Altcoins have Mixed Results
Bitcoin and Ether were somewhat stable but altcoin funds were affected. Interest in altcoin-specialist funds plummeted. Solana products collected $93.3 million, and XRP funds collected $61.6 million. Both were sharp drops from weeks when altcoins had been drawing a lot of interest.
Investor reluctance, driven by the liquidation event, also contributed to the slowing down. Nic Puckrin, a cryptocurrency analyst, said that the instant liquidation forced a huge number of traders out of even profitable positions. This highlighted the risks involving auto-deleveraging by exchanges, a process that some of these traders may not necessarily be aware of.
The recent U.S. government shutdown also affected market dynamics, stopping at least 16 crypto ETF applications. Experts hold the opinion that since the shutdown is now over, several new spot crypto ETFs could act as a catalyst for follow-up inflows that would revive the enthusiasm for altcoins. As the old-fashioned centralized exchanges step into the limelight in heightened scrutiny, billions of money flowing into crypto funds are proof of a reviving market that is willing to change and stick around no matter the challenge.
