DeepSeek News Triggered $530M in Outflows Before Rapid Rebound: CoinShares

Investment in digital asset products saw total inflows of $527 million last week. However, intraweek flows revealed fluctuating investor sentiment, largely driven by broader market concerns, including the DeepSeek news, which led to $530 million in outflows on Monday.

Despite this initial decline, the market recovered with over $1 billion in inflows later in the week. With $44 billion in inflows recorded in 2024, $5.3 billion in year-to-date (YTD) inflows, and significant price increases, CoinShares revealed that the current sell-off is not surprising.

XRP Becomes Top-Performing Altcoin

According to CoinShares’ Digital Asset Fund Flows Weekly Report, BTC experienced inflows of $486 million last week, while short-Bitcoin investments saw a second consecutive week of inflows, totaling $3.7 million. Ethereum, on the other hand, ended the week with net-zero flows but faced challenges earlier, likely due to its higher exposure to the technology sector and concerns over global economic growth.

XRP has emerged as the second-best performer, with year-to-date inflows reaching $105 million, including $15 million last week. Overall, altcoins recorded positive inflows, with Solana attracting $4.5 million, followed by Chainlink with $3.1 million and Cardano with $1 million. However, Litecoin experienced a slight outflow of $0.2 million.

Meanwhile, multi-asset investment products saw nearly $9 million in inflows over the past week, reflecting continued investor interest in diversified digital asset portfolios. Additionally, blockchain equities have attracted $160 million in year-to-date inflows as investors view the recent price downturn as a chance to buy.

Canada Faces Setback

In terms of regional inflows, the US led with a full week of investments totaling $474 million, contributing to a year-to-date inflow of $5 billion. A similar trend was observed in Europe, where digital asset products attracted $78 million last week, which catapulted the total YTD inflows to $93 million.

Among European nations, Switzerland saw the highest inflows at nearly $58 million, followed by Germany with $22.3 million. Sweden, on the other hand, experienced outflows of $3.6 million.

Other regions also reported positive inflows. For instance, Brazil recorded $15.8 million in inflows, while Hong Kong added $2.3 million during the same period. Australia recorded a modest inflow of $0.1 million.

However, Canada faced significant outflows of $43 million, possibly due to concerns over potential US trade tariffs.