Key TakeawaysDigital asset ETPs saw $513 million in outflows after the October 10 liquidity cascade.Bitcoin led withdrawals with $946 million in outflows, while Ethereum, Solana, and XRP saw strong inflows.Ethereum attracted $205 million, including $457 million into leveraged ETPs, signaling strong investor conviction.Solana and XRP inflows were fueled by upcoming ETF launches.Outflows were mainly U.S.-focused, while Germany, Switzerland, and Canada saw dip-buying inflows.Digital Asset ETPs Record $513M Outflows After Binance Liquidity EventDigital asset investment products recorded $513 million in outflows last week, according to Digital Asset Fund Flows Volume 256, following sharp market swings triggered by the Binance liquidity cascade on October 10.Despite the turbulence, ETP trading volumes remained elevated at $51 billion — nearly double this year’s weekly average — suggesting investors remained highly active rather than risk-averse.Net outflows since the liquidity event now total $668 million, but analysts noted that ETP investors were relatively unfazed, in contrast to on-chain traders who reacted more defensively.Bitcoin Dominates Outflows; Ethereum Leads Dip-BuyingThe U.S. dominated last week’s outflows with $621 million, while European and Canadian markets moved in the opposite direction.Germany: +$54.2MSwitzerland: +$48.0MCanada: +$42.4MBitcoin (BTC) remained the main source of outflows, losing $946 million, bringing its year-to-date inflows down to $29.3 billion, compared to $41.7 billion in 2024.In contrast, Ethereum (ETH) investors “bought the dip,” pouring $205 million into ETH products. A significant portion of this came from leveraged ETPs, with $457 million entering 2x ETH funds — a sign of renewed conviction in Ethereum’s price recovery potential.Solana and XRP ETP Launch Enthusiasm GrowsMeanwhile, Solana (SOL) and XRP continued to attract strong inflows of $156 million and $73.9 million, respectively.Analysts attributed the demand to continued optimism around new ETP launches and increasing institutional interest in alternative Layer-1 and payment network assets.ETF Momentum Offsets U.S. Selling PressureThe U.S. market correction drove the majority of outflows, but global ETF enthusiasm helped offset losses. With ETP inflows across Europe and Canada, analysts expect institutional rotation rather than sustained selling.The report concludes that, despite October’s volatility, fund flows remain structurally positive, signaling that institutional investors are treating dips as buying opportunities rather than exits.