Crypto exchange-traded products (ETPs) recorded a fourth straight week of inflows, bringing in $527 million last week, according to CoinShares‘ latest report.
James Butterfill is the Head of Research at CoinShares. He said that the mood in the markets fluctuated throughout the entire week. This was due to broader concerns about the economy.
According to him, a key factor was the impact of DeepSeek, a Chinese artificial intelligence company whose open-source R1 model outperformed OpenAI’s ChatGPT.
AI, a popular app in Apple’s App Store, has been ranked at the top. However this is raising concern over the impact it will have on US-based tech giants such as Nvidia. It was this uncertainty that led to the $530m in withdrawals made at the beginning of the week.
In spite of this decline, the markets rebounded, with over $1 Billion in new inflows at the end of the week.
Butterfill pointed out that the recovery is in line with market trends. Crypto ETPs recorded inflows of $44 billion this year, and $5 billion to date (YTD). The recent correction, he said, was inevitable after the strong rally in 2024.
Bitcoin leads inflows while the US dominates
United States continues to be the leader in the inflows with $474 Million last week, and $5 billion so far this year.
Europe came in second with $78.8 million, which brings the YTD figure to $93.0 million. Canada, on the other hand, saw a $43 million outflow, probably due to worries over US tariffs.
Bitcoin products are still the preferred choice of investors. The success and popularity of Bitcoin ETFs is a major factor.
BlackRock’s IBIT dominated inflows, pulling in $918 million. The gains from BlackRock’s IBIT were partly offset by the significant losses of major issuers such as Fidelity Grayscale Bitwise.
Meanwhile, Bitcoin’s price volatility also attracted bearish sentiment, as short-Bitcoin products saw a second consecutive week of inflows, totaling $3.7 million. The products now have accumulated more than $9 million in total YTD.
XRP gains traction
XRP continued to perform well, attracting inflows of $15 million last week. This is the year’s best performing altcoin, and YTD inflows have reached $105,000,000.
Ripple’s latest quarterly report showed a resurgence in on-chain activity, increased trading volume, and growing institutional demand. The company attributed this momentum to the overwhelming positivity regarding regulations following Donald Trump’s victory in the US Presidential election.
Ethereum however had a much more difficult week. It ended the week with neutral net flows. Butterfill suggested that ETH’s exposure to the technology sector and broader economic concerns may have contributed to its lackluster performance.
Investors are taking advantage of recent drops in price to purchase blockchain stocks.
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