The post Bitcoin, XRP lead $527 million inflow recovery despite volatility appeared on BitcoinEthereumNews.com.

Crypto exchange-traded products (ETPs) recorded a fourth straight week of inflows, bringing in $527 million last week, according to CoinShares‘ latest report. James Butterfill, the head of research at CoinShares, said that market sentiment fluctuated significantly throughout the week, shaped by broader economic concerns. According to him, a key factor was the impact of DeepSeek, a Chinese artificial intelligence company whose open-source R1 model outperformed OpenAI’s ChatGPT. The AI app soared to the top of the App Store rankings, raising concerns over its impact on major US tech firms like Nvidia. This uncertainty contributed to $530 million in outflows at the start of the week. Despite this sell-off, the market rebounded strongly, attracting over $1 billion in inflows later in the week. Butterfill noted that this recovery aligns with broader market trends, given that crypto ETPs have recorded $44 billion in inflows this year and $5.3 billion year-to-date (YTD). He added that the recent correction was expected after the sustained rally seen in 2024. Bitcoin lead inflows as the US dominates The United States continued to lead in inflows, with $474 million last week and $5 billion YTD. Europe followed with $78 million in weekly inflows, bringing its YTD total to $93 million. However, Canada faced $43 million in outflows, likely due to concerns over US trade tariffs. Bitcoin investment products remained the top choice among investors, supported by the ongoing success of spot Bitcoin ETFs. BlackRock’s IBIT dominated inflows, pulling in $918 million. However, these gains were partially offset by significant outflows from major issuers like Fidelity, Grayscale, and Bitwise, which collectively lost $465 million. Meanwhile, Bitcoin’s price volatility also attracted bearish sentiment, as short-Bitcoin products saw a second consecutive week of inflows, totaling $3.7 million. These products have now accumulated $9 million YTD. XRP gains traction XRP maintained…

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Filed under: News - @ February 3, 2025 11:22 am