Selling pressure builds as ETF outflows weigh on crypto

TLDR

• Bitcoin fell 3.19% over the week to US$88,773 (A$126,946), while total crypto market capitalisation declined 3.74% to US$2.8 trillion (A$4 trillion).
• Major altcoins recorded steeper losses, with SOL down 8.43%, LTC falling 8.56%, and XRP declining 7.25%.
• Crypto ETFs recorded approximately US$1.25 billion (A$1.79 billion) in weekly outflows, their largest withdrawal since June.
• A reported hardware wallet supply chain attack resulted in approximately US$93 million (A$133 million) in stolen crypto assets.
• Researchers identified an XRP Ledger vulnerability that could have enabled the creation of 18 trillion unauthorised tokens. The flaw was patched, with no evidence of exploitation.
• Corporate Bitcoin accumulation continued despite market volatility, while tokenised bond activity highlighted institutional blockchain adoption.

Introduction

September's optimism gave way to a more cautious October as crypto markets surrendered some of their recent gains. Bitcoin slipped below US$89,000 (A$127,270), while major altcoins recorded steeper losses. Institutional investors also withdrew approximately US$1.25 billion (A$1.79 billion) from crypto ETFs, reversing the strong inflows seen in late September.

Weekly trading stats as of Monday, October 12th at 11:00 AM AEDT, based on data from TradingView in USD.

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Bitcoin retreats as altcoins face steeper losses

Bitcoin ended the week at US$88,773 (A$126,946), down 3.19%, as selling pressure extended across the broader crypto market. Ethereum declined 6.97% to US$2,537 (A$3,628), while XRP fell 7.25% to US$1.41 (A$2.02). Solana and Litecoin recorded some of the largest losses among the major assets tracked, declining 8.43% and 8.56%, respectively. Total crypto market capitalisation decreased 3.74% to US$2.8 trillion (A$4 trillion). The widespread declines reflected weaker market sentiment, with investors closely watching institutional fund flows for signs of renewed demand.

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Crypto ETFs record US$1.25 billion (A$1.79 billion) in weekly outflows

Institutional demand weakened as crypto ETFs recorded approximately US$1.25 billion (A$1.79 billion) in net withdrawals over the week, their largest outflows since June. Bitcoin, Ethereum and Solana investment products all faced selling pressure, with Ethereum funds reportedly experiencing their heaviest redemptions in more than eight months. The withdrawals contrasted with the strong inflows recorded in late September. ETF activity remains an important indicator of institutional sentiment, particularly as markets assess the durability of recent demand.

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Security incidents put crypto safeguards in focus

Crypto security returned to the spotlight following reports of a major hardware wallet supply chain attack involving approximately US$93 million (A$133 million) in stolen assets. The incident raised concerns about vulnerabilities in third-party distribution and physical device security. Separately, researchers used artificial intelligence to identify a decade-old vulnerability in the XRP Ledger that could have enabled the creation of up to 18 trillion unauthorised tokens. The flaw was patched, with no evidence of exploitation. Both developments highlighted the importance of ongoing security reviews as digital asset infrastructure continues to evolve.

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Institutional adoption advances despite market volatility

Developments in traditional finance offered a contrasting picture of institutional activity. Corporate Bitcoin treasuries reportedly accumulated approximately 193,000 BTC during 2026, with Strategy accounting for around 175,000 BTC. Meanwhile, Hong Kong's US$2.54 billion (A$3.63 billion) digital green bond issuance demonstrated growing interest in tokenised securities and blockchain-based settlement. These developments highlighted continued institutional participation across corporate balance sheets and financial infrastructure, even as crypto investment products experienced near-term withdrawals. The distinction between investment flows and longer-term adoption remains an important theme for the market.

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Final thoughts

The latest sell-off has tested the optimism that accompanied crypto's recovery in late September. Bitcoin has retreated below US$89,000 (A$127,270), while steeper altcoin losses and US$1.25 billion (A$1.79 billion) in ETF withdrawals suggest investors are reassessing their exposure. Institutional flows will remain an important indicator in the weeks ahead, particularly after the recent reversal in demand. Security developments have also brought renewed attention to the safeguards supporting digital asset infrastructure. Meanwhile, corporate Bitcoin accumulation and tokenised securities activity continue to demonstrate institutional interest beyond short-term price movements. The next test will be whether capital returns to crypto investment products as October progresses.

Announcements

Australia FIX Conference 2026 puts tokenisation in focus

BTC Markets Chief Commercial Officer Paul Stonham will moderate a panel at the Australia FIX Conference 2026 on 22 October at The Fullerton Hotel Sydney. The discussion, “From Pilots to Market Infrastructure: Tokenisation Becomes Real,” will explore the progress of tokenisation in financial markets, its potential for institutional adoption and key considerations around custody, liquidity, interoperability, digital identity and regulation.

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