Escape from Corporateness: Shift Towards Altcoins Instead of Bitcoin

Following the liquidity shock on October 10, 2025, a total of $513 million was withdrawn from digital asset investment products. During this period, Bitcoin (BTC) sales were balanced by strong inflows in Ethereum (ETH), Solana (SOL), and XRP. Digital asset ETP/ETFs (exchange-traded products) recorded a net outflow of $513 million last week. However, this situation reflected a selective risk-taking appetite rather than panic in investor behavior. Weekly trading volume surged to $51 billion, nearly double the year-to-date average, indicating sustained institutional interest.

After the liquidity tier from Binance on October 10, the cumulative net outflow reached $668 million. However, these outflows exhibited regional divergence. Nearly all of the outflows were concentrated in US-based products ($621 million), while "buying the dip" trends became evident in Germany ($54.2 million), Switzerland ($48.0 million), and Canada ($42.4 million). This opposing flow highlighted the divergence in global investor profiles during market shocks.

Focusing on the week, Bitcoin experienced the largest outflow at $946 million. Year-to-date inflows remained at $29.3 billion, falling short of $41.7 billion recorded in 2024. However, investors found an opportunity to capitalize on the decline in Ethereum, with an outflow of $205 million. Notably, the 2x leveraged Ethereum ETP saw an inflow of $457 million, implying a strong mid-term bullish expectation. Additionally, there was increased speculative buying in anticipation of new ETP/ETF launches for Solana ($156 million) and XRP ($73.9 million).

While risk aversion was prominent in the US, inflows in Europe and Canada indicated that the market was not solely dependent on Bitcoin. The perception of opportunity is strengthening in ecosystem-focused assets such as Ethereum, Solana, and XRP. This divergence could play a critical role in determining the direction of fund flows in the coming weeks.