Bitwise CIO Dismisses Crypto Crash as ‘Blip’ Amid $338M ETF Inflows and Market Rebound

Bitwise Chief Investment Officer Matt Hougan has downplayed the recent crypto crash, calling it a “temporary blip” in what he describes as a long-term bull market. His remarks come as digital assets recover from a sharp sell-off triggered by renewed U.S.–China tensions, with ETFs seeing strong inflows once again.

Bitwise CIO Downplays Crash, Highlights Market Strength

In a recent commentary, Matt Hougan addressed the sudden downturn that erased billions from the crypto market last week. He described it as a “momentary shakeout” rather than the start of a larger downturn. The sell-off began when U.S. President Donald Trump threatened a 100% tariff on Chinese imports, sending Bitcoin down by 15% and altcoins like Solana plunging over 40%.

Despite the panic, Bitcoin quickly stabilized and climbed back above $115,000 by Monday morning. Hougan noted that such volatility is normal for emerging markets and emphasized that “nothing fundamental” had changed in crypto’s growth story. He also praised the resilience of decentralized platforms like Uniswap and Aave, which operated seamlessly while some centralized exchanges faced brief slowdowns.

Hougan explained that the event showed how much stronger the crypto infrastructure has become. He said the quick rebound proves that the market can handle external shocks without long-term disruption. “We saw a fast reset, a deep breath, and a move forward,” he said. According to him, institutional participation and growing ETF demand continue to drive the market’s structural strength.

Crypto Market Rebounds as ETF Inflows Surge

The broader crypto market has started to bounce back alongside renewed institutional demand. Data from SoSoValue shows that on October 14, spot Bitcoin and Ethereum ETFs saw combined net inflows of $338 million. Bitcoin ETFs contributed $102.6 million, led by Fidelity’s FBTC with $133 million in net inflows. Bitwise’s BITB added $8 million, and ARK 21Shares’ ARKB recorded $6.8 million.

Source: SoSoValueEthereum ETFs performed even better, bringing in $236 million in new inflows. Fidelity’s FETH led with $154 million, followed by VanEck and Grayscale products. The figures mark a sharp reversal from last week’s massive outflows, which saw over $700 million pulled from crypto ETFs.

The Bitcoin price has since recovered by 1.1% to trade near $112,600, while Ethereum has risen over 4%. Although prices remain below pre-crash levels, the rebound signals a return of investor confidence. For Hougan, these flows confirm that the latest crash was only a brief pause in an ongoing bull market, not the end of it.

Bitcoin price, source: CoinMarketCap