Key Points
- The inflow into crypto investment products last week was $527 million, significantly less than previous weeks.
- Bitcoin (BTC) remains the largest contributor to inflows, while Ethereum (ETH) saw zero net flows.
Crypto investment products experienced a decrease in inflow last week, with the total amount only reaching $527 million. This was a significant drop from previous weeks, which saw inflows in the billions.
Market Volatility and Investor Sentiment
The CoinShares research report indicates that this decrease is a reflection of the volatile sentiments of investors. Factors such as the rise of China’s DeepSeek AI company led to outflows of up to $530 million. Despite this, the market was able to recover, with more than $1 billion in inflows in the latter part of the week.
James Butterfill, CoinShares’ Head of Research, explained that while the sell-off was large, it was not surprising. This is due to the significant inflows and price gains of several cryptocurrencies seen in 2024.
Country-wise Inflows and Outflows
The U.S. had the highest inflows by country, amounting to $474 million. Europe followed suit with $78 million in inflows, led by Switzerland and Germany. Contrarily, Canada experienced outflows of $43 million, possibly due to the threat of U.S. trade tariffs.
Bitcoin and Altcoins Inflows
Bitcoin (BTC) continued to be the largest contributor to inflows, with a total of $486 million. The altcoin XRP (XRP) also performed well, with nearly $15 million in inflows. Ethereum (ETH), on the other hand, had zero net flows. Other smaller altcoins, such as Solana (SOL), Chainlink (LINK), and Cardano (ADA), also saw inflows.
CoinShares also noted that blockchain equities have seen year-to-date inflows of $160 million, as investors see more buying opportunities amid the current price drops.