Ah, the world of cryptocurrency exchange-traded products (ETPs), where fortunes are made and lost faster than you can say “blockchain.” Last week, amidst the swirling tempest of DeepSeek panic and the ominous shadow of tariffs cast by none other than President Trump, the weekly inflows plummeted to a mere $527 million. Yes, you read that right! A staggering drop that would make even the most stoic investor weep into their digital wallets.
In a dramatic twist worthy of a Dostoevsky novel, crypto ETP inflows nosedived by a jaw-dropping 72% compared to the previous week’s robust $1.9 billion. CoinShares, the oracle of crypto wisdom, reported this calamity on February 3, leaving us all to ponder the fickle nature of investor sentiment.
As if the universe conspired against us, accelerated selling followed the volatile investor mood, which CoinShares attributed to the market’s existential dread surrounding China’s AI platform DeepSeek and the global trade war fears ignited by Trump’s tariff tantrums. Who knew that a few tariffs could send the crypto world into a tailspin?
According to the ever-astute CoinShares research director, James Butterfill, the news of DeepSeek alone triggered a staggering $530 million in outflows on January 27. Talk about a bad hair day for crypto!
XRP: The Unexpected Hero of ETPs
In a plot twist that would make even the most seasoned screenwriter raise an eyebrow, Bitcoin (BTC) ETPs managed to attract inflows totaling $486 million last week, bringing the year-to-date (YTD) inflows to a respectable $4.9 billion. Meanwhile, short-BTC products saw a modest inflow of $3.7 million, down 27% from the previous week. It seems even the shorts are feeling the heat!
Ether (ETH)-based ETPs, however, were not so lucky, joining the ranks of the forgotten alongside Litecoin (LTC) with zero inflows last week. In 2025, ETH ETPs have only managed to scrape together $177 million in inflows. Ouch!
But wait! Enter XRP (XRP), the plucky underdog that continued to gather steam with $14.5 million in weekly inflows. According to CoinShares, XRP has now claimed the title of the second-best-performing altcoin for ETPs, boasting YTD inflows of $105 million. Who would have thought?
Grayscale: The Great Exodus
In a scene reminiscent of a mass evacuation, crypto ETP investors were busier than ever selling off Grayscale Investments and Bitwise products last week. Grayscale saw a staggering $298 million in outflows, a 140% increase from the previous week’s $124 million. It’s like watching a slow-motion train wreck, but with more zeros!
Bitwise’s crypto exchange-traded funds (ETF) also joined the outflow party, bleeding $126 million last week, a surge of over 560% compared to the previous week. It’s a veritable bloodbath!
In line with this chaotic sentiment, BlackRock’s crypto ETFs decided to take a breather, slowing their buying spree by 58%, with $918 million in inflows last week compared to $1.4 billion the week before. It’s like watching a once-mighty beast slowly lose its roar.
The Jim Cramer Effect: A Comedy of Errors
As if the crypto market needed more drama, former hedge fund manager Jim Cramer made headlines on January 27 by advocating for Bitcoin on CNBC’s Mad Money, while simultaneously advising against investments in MicroStrategy, the largest corporate holder of Bitcoin. The irony is delicious!
The market reacted faster than a cat on a hot tin roof, as many traders have linked Cramer’s investment recommendations to a subsequent drop in prices. “The inverse Cramer is always real when
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2025-02-03 15:18