Global digital assets: October ETF and ETP review
A monthly column on the global crypto markets and ETF/ETP flows, brought to you by CoinDesk Indices, Trackinsight and ETF Express.
Joshua de Vos, Research Lead, CoinDesk, writes that October reversed the inflow momentum that had carried crypto ETPs through August and September. According to TrackInsight data, global digital-asset investment products recorded USD1.86 billion in net outflows during the month, following USD11.3 billion in combined net inflows across the two prior months, with total assets under management standing at USD150.4 billion. US-listed vehicles shed USD1.90 billion, more than the global total, while European domiciles posted modest net inflows.
The CoinDesk 20 Index (CD20), which captures a diversified cross-section of the top 20 digital assets, fell 13.38 per cent in October, giving back part of the 41.79 per cent gain recorded across August and September. The more concentrated CoinDesk 5 Index (CD5) declined 9.35 per cent, with the four-percentage-point gap between the two indices indicating that large-cap assets offered relative shelter as the pullback deepened further down the market-cap spectrum.
Asset flows
According to data from TrackInsight, October’s outflows were concentrated in Ether-linked instruments, while bitcoin finished marginally positive only because of a single fund. Beyond the two largest assets, newly listed single-asset products drew capital even as established altcoins saw redemptions.
● Bitcoin: BTC-linked products recorded net inflows of USD87.4 million, with total category AUM of USD119.5 billion. These inflows were mainly driven by the iShares Bitcoin Trust ETF (IBIT), which alone attracted USD1.16 billion, meaning bitcoin products excluding IBIT net redeemed approximately USD1.07 billion.
● Ethereum: Ether-linked products experienced net outflows of USD1.66 billion, ending October with USD17.7 billion in aggregate AUM. The iShares Ethereum Trust ETF (ETHA) accounted for USD1.33 billion of that total, roughly 80 per cent of the category’s redemptions.
● Multi-asset: Diversified baskets recorded net outflows of USD15.7 million, with total AUM of USD2.59 billion.
● Altcoins: Solana-linked products recorded USD208.8 million in net outflows (AUM: USD3.06 billion), while XRP attracted USD36.6 million (AUM: USD2.75B). BNB-linked products drew USD100.8 million (AUM: USD107.6 million), almost entirely through the VanEck BNB ETF (VBNB), and NEAR added USD41.5 million (AUM: USD177.3 million) following the late-September launch of the Bitwise NEAR ETF (NRR). Hyperliquid (USD49.3 million) and Zcash (USD26.5 million) recorded net outflows.
Flows by geography
● Americas: Net outflows of USD1.89 billion, driven entirely by US-listed products (USD1.90 billion in redemptions), with Canada contributing a marginal USD7.0 million in inflows. US-domiciled ETFs closed October with USD127.0 billion in AUM, representing 84.4 per cent of global market share.
● Europe: Net inflows of USD41.7 million. Switzerland led at USD99.6 million (AUM: USD4.80 billion), followed by Jersey at USD44.3 million (AUM: USD4.87 billion) and Ireland at USD26.0 million, partially offset by outflows from Germany (USD60.3 million), Liechtenstein (USD36.8 million), Sweden (USD22.4 million) and Cayman Islands-domiciled vehicles (USD9.8 million).
● APAC: Net outflows of USD7.0 million, led by Hong Kong (USD11.2 million in redemptions) and partially offset by Australia (USD3.6 million in inflows).
Flows by currency
● USD: USD-denominated products recorded USD1.89 billion in net outflows, while maintaining USD141.8 billion in AUM, the dominant share of global crypto ETP assets.
● CAD: CAD-denominated products recorded USD46.4 million in net inflows, with total AUM of USD4.88 billion, the largest net inflow of any currency bloc.
● EUR / SEK / AUD: EUR-denominated products recorded USD14.2 million in outflows (AUM: USD1.43 billion), SEK shed USD4.6 million (AUM: USD1.70B), and AUD added USD3.6 million (AUM: USD570 million).
Largest ETF gainers (by October net flows)
● iShares Bitcoin Trust ETF (IBIT): +USD1.16B; USD62.3B AUM
● VanEck BNB ETF (VBNB): +USD101.4M; USD92.3M AUM
● NEOS Bitcoin High Income ETF (BTCI): +USD80.7M; USD1.33B AUM
● iShares Bitcoin ETP (IB1T): +USD71.1M; USD1.44B AUM
● NEOS Boosted Bitcoin High Income ETF (XBCI): +USD58.8M; USD231.6M AUM
● 21shares Bitcoin Core ETP (CBTC): +USD57.4M; USD621.5M AUM
● Bitwise NEAR ETF (NRR): +USD46.5M; USD72.2M AUM
● Fidelity Advantage Bitcoin ETF (FBTC): +USD36.6M; USD1.22B AUM
● Morgan Stanley Bitcoin Trust (MSBT): +USD34.0M; USD829.6M AUM
● CoinShares Bitcoin ETP (BITC): +USD26.6M; USD1.66B AUM
Outlook
October’s outflow figure reflects a redistribution of flows across vehicles, rather than a large market-wide exit. Two funds, ETHA and the Fidelity Wise Origin Bitcoin Fund (FBTC), accounted for USD2.02 billion of redemptions. Income-oriented products, led by the NEOS Bitcoin High Income ETF (BTCI) and its boosted counterpart (XBCI), featured prominently among the gainers while US-listed leveraged long products shed USD129.6 million, signalling a preference for yield-generation over directional leverage as volatility returned.
Near-term flows will depend on whether the price recovery of August and September can reassert itself after October’s pullback. However, the continued expansion of the single-asset product set, with new BNB and NEAR vehicles drawing capital within weeks of listing, and Europe’s ability to post net inflows in a month of heavy US redemptions, suggest the ecosystem’s breadth is growing independently of the headline flow direction.
Data Sources:
TrackInsight (All ETF and ETP Data): https://www.trackinsight.com/services/data-services
CoinDesk (Bitcoin, CD5, CD20, Centralised Exchange Data): https://indices.coindesk.com/indices; https://www.coindesk.com/price
Disclaimer: TrackInsight considers flows from an ETF’s perspective, treating the fund’s first AUM upon listing as its initial inflow, which may differ from other sources that account for pre-listing activity or conversions.