Crypto ETFs Hit Record Highs Amid Market Turbulence
Last week, Bitcoin and Ethereum ETFs witnessed a massive surge in investments, pulling in over $3.17 billion. This brought the total for the year to a staggering $48.7 billion, already surpassing last year's record.
- Bitcoin funds alone accounted for $2.6 billion
- Ethereum funds brought in $338 million
Market Drop Minimal Impact on ETF Holdings
Despite a sharp market drop on Friday, the impact on ETF holdings was minimal, with only $159 million flowing out. Experts believe that institutional investors, who often engage in complex trading strategies, were likely behind any minor outflows.
Crypto Fear & Greed Index Reflects Pessimism
The Crypto Fear & Greed Index dropped to 24 on Sunday, indicating extreme fear. By Monday, it had slightly recovered to 38, still in the fear zone. Predictors on Myriad think it will stay below 55 by October 15, showing lingering pessimism.
Record Trading Volumes Amid Market Turbulence
Trading volumes for digital asset ETFs hit record highs last week, with $53 billion exchanged. Friday alone saw $15.3 billion in trades, the highest daily volume ever. However, the market value of these ETFs fell by 7% after a tariff announcement, down to $242 billion.
Bitcoin and Ethereum Show Signs of Recovery
- Bitcoin rebounded by nearly 3% to around $114,200
- Ethereum surged over 7% to $4,118
This recovery comes after both cryptocurrencies faced significant drops over the weekend.
Flash Crash Impacts Leveraged Traders
The flash crash on Friday had a bigger impact on leveraged traders, with the total market capitalization plummeting from $4.3 trillion to $2.7 trillion, wiping out nearly $600 billion in value. This crash triggered massive liquidations on centralized exchanges, but decentralized platforms fared better due to lower leverage and multiple price feeds.
