Quick Facts
Cryptocurrency ETP Weekly Inflows Plunge to $527 Million Amidst Turmoil from DeepSeek Panic and Trump Tariffs
Cryptocurrency ETP Weekly Inflows Fall to $527M Amid DeepSeek Panic and Trump Tariffs
The cryptocurrency market has been on a rollercoaster ride in recent weeks, with prices fluctuating wildly due to a combination of factors, including the DeepSeek hack and the looming threat of Trump tariffs. Amidst this volatility, the weekly inflows into cryptocurrency exchange-traded products (ETPs) have seen a significant decline, according to data from CoinShares.
In this article, we will delve into the latest trends in cryptocurrency ETP inflows, exploring what factors have contributed to the decline and what it may mean for the future of the market.
Grayscale Investments Sees Crypto ETF Outflows Increase
In a worrying sign for crypto proponents, Grayscale Investments, one of the largest and most influential players in the cryptocurrency space, saw its crypto ETF outflows increase by a staggering 140% last week. This marks a significant departure from the previous week’s trend, which saw inflows of $143 million into Grayscale’s crypto ETF.
Grayscale’s flagship product is the Grayscale Bitcoin Trust (GBTC), which has historically been considered a safe haven for investors looking to gain exposure to the cryptocurrency market. However, the recent outflows indicate that even Grayscale’s most loyal clients may be becoming increasingly risk-averse.
BlackRock’s Inflows Slow Significantly
Meanwhile, BlackRock, the world’s largest asset manager, saw its crypto ETF inflows slow significantly last week. While the company’s iShares Bitcoin Strategy ETF (BITQ) continues to be a popular choice among investors, the pace of growth has slowed dramatically.
BlackRock’s ETF has been one of the most successful cryptocurrency ETPs to date, with assets under management (AUM) now surpassing $1 billion. However, the recent slowdown in inflows suggests that even BlackRock may be feeling the impact of the market’s volatility.
DeepSeek Hacked, Trump Tariffs to Blame?
So what’s behind the decline in crypto ETP inflows? One possible culprit is the recent hacking incident at DeepSeek, a popular cryptocurrency exchange. The hack, which was reported last week, saw thousands of users’ assets stolen, leading to widespread panic and selling pressure.
Another factor that may be contributing to the decline in inflows is the ongoing trade tensions between the United States and China. The threat of Trump tariffs on Chinese goods has sent shockwaves through financial markets, causing many investors to seek safer havens.
What Does it Mean for the Crypto Market?
So what does the decline in crypto ETP inflows mean for the market? In short, it’s a mixed bag.
On the one hand, the decline in inflows could be a sign that investors are becoming increasingly risk-averse, which may lead to a further decline in prices. However, on the other hand, it could also be a sign that investors are simply taking a breather, waiting for prices to stabilize before dipping back in.
The cryptocurrency market is here to stay, and investors would be wise to keep a close eye on trends and developments in this space.
