Cryptocurrency exchange-traded products (ETPs) struggled last week amid DeepSeek panic and broader market concerns, which limited weekly inflows to $527 million.
Crypto ETP inflows plummeted 72% in the last trading week, compared to $1.9 billion of inflows recorded in the previous week, according to a report by CoinShares published on Feb. 3.
Accelerated selling followed volatile investor sentiment, which CoinShares linked to market concerns around China’s AI platform DeepSeek and global trade war fears triggered by United States President Donald Trump pushing stricter tariffs on imports.
According to CoinShares research director James Butterfill, DeepSeek news triggered $530 million in outflows on Jan. 27.
XRP is the second best-performing altcoin in ETPs
Bitcoin (BTC) ETPs saw inflows totaling $486 million last week, bringing year-to-date (YTD) inflows to $4.9 billion. Short-BTC products saw the second week of inflows at $3.7 million, down 27% from the previous week.
Ether (ETH)-based ETPs were among the only two altcoin ETPs that saw zero inflows last week, alongside Litecoin (LTC). In 2025 so far, ETH ETPs have seen $177 million of inflows.
Flows by assets (in millions of US dollars). Source: CoinShares
On the other hand, XRP (XRP) investment products continued gathering steam with $14.5 million in weekly inflows. According to CoinShares, XRP is now the second-best-performing altcoin for ETPs, with YTD inflows of $105 million.
Grayscale selling accelerates at 140%
Crypto ETP investors were more active in selling crypto investment products by Grayscale Investments and Bitwise last week, according to CoinShares data.
Grayscale saw $298 million in outflows last week, expanding the previous week’s outflows of $124 million by 140%. Following weeks of selling, Grayscale’s crypto investment products have so far recorded $690 million of outflows YTD.
Related: Trump’s trade war will send BTC price ‘violently higher’ — analyst
Bitwises’s crypto exchange-traded funds (ETF) were also bleeding last week, seeing $126 million of outflows, surging more than 560% compared to the previous week.
Flows by issuers (in millions of US dollars). Source: CoinShares
In line with the volatile sentiment, BlackRock’s crypto ETFs buying slowed by 58%, posting $918 million of inflows last week, compared to $1.4 billion in the previous week.
Jim Cramer effect, Tether delistings in the EU added to volatility
In addition to market fears associated with Trump’s tariffs and DeepSeek concerns, the crypto market saw a few more developments that might have contributed to slower inflows last week.
On Jan. 27, former hedge fund manager Jim Cramer called for owning Bitcoin on CNBC’s Mad Money, urging against investments in MicroStrategy, which is the largest corporate holder of Bitcoin.
Source: CramerTracker
The market and the community were quick to react to Cramer’s news, as many in the trading community have linked his investment recommendations to a subsequent drop in prices.
“The inverse cramer is always real when it comes to Bitcoin. It shall be studied for generations to come,” one market observer wrote on X.
The sell-off also came amid multiple exchanges in the European Union delisting Tether UDSt (USDT) — the largest stablecoin on the market — in compliance with new local crypto regulations.
Magazine: XRP to $4 next? SBF’s parents seek Trump pardon, and more: Hodler’s Digest, Jan. 26 – Feb. 1