Crypto Market Sees $2.2 Bln Inflows, Highest Since October Crash

Key Insights:

• As per the latest crypto market update, digital asset investment products recorded $2.17B in weekly inflows, the largest since October 10, 2025.
• Bitcoin ETF shed $394.7M on Friday, January 16, amid tariff threats and delays to the CLARITY Act.
• Solana ETF registered its first-ever daily outflows at $2.2M after weeks of sustained institutional demand.

Digital asset investment products recorded inflows of $2.17 billion last week, marking the largest weekly total since October 10. It also comes just ahead of the crypto market crash.

As CoinShares reported on January 19, Bitcoin accounted for the largest share of asset-level flows, with $1.55 billion in weekly inflows. Month-to-date data showed Bitcoin accumulated $1.66 billion through mid-January.

Ethereum followed with $496 million in weekly inflows despite proposals under the CLARITY Act that could restrict stablecoins from offering yield. Month-to-date flows reached $553 million.

Solana recorded $45.5 million in weekly inflows, bringing month-to-date totals to $75.8 million. XRP attracted $69.5 million for the week and $108.1 million month-to-date.

In other crypto, Sui recorded $5.7 million, LIDO $3.7 million, and Hedera $2.6 million in weekly inflows.

Crypto Market News Showed US Leading Regional Flows

The crypto market regional sentiment was broad-based, with the US leading at $2.05 billion in weekly inflows. Germany followed with $63.9 million, Switzerland recorded $41.6 million, Canada brought in $12.3 million, and the Netherlands added $6 million.

Blockchain equities recorded $72.6 million in inflows, indicating sustained interest across the broader digital asset ecosystem.

Inflows were stronger earlier in the week, but the crypto market sentiment turned negative on Friday, January 16. $378 million of outflows for Bitcoin, Ethereum, XRP, and Solana ETPs traded in the US on Friday.

The reversal followed diplomatic escalation over Greenland and renewed threats of additional tariffs from the President Donald Trump administration.

According to Farside Investors, the US Bitcoin ETFs shed $394.7 million in flows on Friday. Ethereum ETFs registered just $4.7 million in positive net flows, still positive but dramatically weaker than earlier in the week.

CoinGlass data showed Solana ETF registered daily net outflows for the first time on January 16, with $2.2 million leaving the funds. XRP ETFs recorded $1.1 million in positive net flows, mirroring Ethereum’s pattern of technically positive but weak performance.

Sentiment was also weighed down by suggestions that Kevin Hassett, a leading contender for the next US Fed Chair and a well-known policy dove, was likely to remain in his current role rather than taking the Fed chairmanship.

CLARITY Act Delay Triggered Policy Uncertainty, Liquidations Pile Up

The initial leg lower on Friday was tied to Washington rather than specific factors related to the crypto market.

The Senate Banking Committee postponed its planned markup of the CLARITY Act after Coinbase withdrew its support and publicly criticized provisions that would block stablecoin rewards.

Prices softened on the day, but the story changed the weekend setup. The crypto market policy clarity went from a tailwind to a question mark, and leveraged positioning became fragile, turning into thin liquidity.

The selloff accelerated during the weekend when fresh macro shocks hit risk appetite.

Trump’s threat of escalating tariffs on multiple European countries linked to the Greenland dispute triggered broader risk-off moves.

Crypto prices, which trades continuously, became an immediate outlet for de-risking while traditional markets were closed for the holiday-thinned session.

Reports tied the drop to a liquidation cascade in derivatives, with roughly $875 million in leveraged positions liquidated in a 24-hour window.

On January 19, the move extended into Asia and Europe as tariff fears and haven demand strengthened. As of press time, Bitcoin traded at $92,991.76, while the crypto market’s total cap contracted by 2.6% over the past 24 hours.

Two Catalysts Stacked Against the Crypto Market

Two catalysts are stacked from Friday to Monday. Regulatory uncertainty from CLARITY’s delay weakened the narrative that US rules were finally coming.

Then tariffs and trade conflict hit sentiment, with forced liquidations doing mechanical damage once prices started slipping. The crypto market liquidations reached the high hundreds of millions of dollars over 24 hours.

Month-to-date data through mid-January showed total inflows reached $2.4 billion despite Friday’s reversal.

The pattern suggested institutional flows remained constructive. However, Friday’s contraction indicated that macro and policy catalysts could quickly reverse momentum when leverage built up during thin trading conditions.