Last week, crypto investment products saw inflows of $527 million, a significant decline from the nearly $2 billion in inflows the week prior. This drop is attributed to volatile investor sentiment and factors such as the emergence of the Chinese DeepSeek AI company.
Impact of Volatility on Crypto Investments
According to the CoinShares report, intraweek flows reflected volatile investor sentiments. Broader market concerns, such as the emergence of China’s DeepSeek AI company, triggered outflows of up to $530 million. However, the market managed to bounce back with over $1 billion in inflows in the latter half of the week, partially offsetting the outflows.
Geographic Analysis of Flows
The U.S. continues to lead in inflows by country with $474 million, bringing the year-to-date to $5 billion. Europe saw similar trends with $78 million in inflows last week and $93 million year-to-date. Switzerland and Germany led with $57.9 million and $22.3 million in inflows respectively. Meanwhile, Canada experienced outflows of $43 million, possibly due to the looming threat of trade tariffs from the U.S., put into effect on February 1.
Cryptocurrency and Altcoin Dynamics
Bitcoin remains the biggest contributor to inflows with $486 million, while short-Bitcoin products continued with a second week of inflows amounting to $3.7 million. XRP emerged as the second best-performing altcoin with nearly $15 million in inflows last week and year-to-date inflows of $105 million. Ethereum saw zero net flows, plummeting earlier in the week due to its greater exposure to the technology sector and the global market. Among smaller altcoins, Solana attracted $4.6 million, Chainlink brought in $3.1 million, and Cardano added $1 million.
Despite the market's volatile sentiments, crypto investments remain a focal point for investor interest, as evidenced by significant fund inflows and altcoin market activity.
