Crypto ETFs Hit Record Highs Amid Market Turbulence

Last week, Bitcoin and Ethereum ETFs saw 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, while Ethereum funds brought in $338 million. Despite a sharp market drop on Friday, the impact on ETF holdings was minimal. Only $159 million flowed out, suggesting that retail investors held steady. Experts believe that institutional investors, who often engage in complex trading strategies, were likely behind any minor outflows. 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. 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 have shown signs of recovery. Bitcoin rebounded by nearly 3% to around $114, 200, while Ethereum surged over 7% to $4, 118. This recovery comes after both cryptocurrencies faced significant drops over the weekend. The flash crash on Friday had a bigger impact on leveraged traders. The total market capitalization plummeted 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.