Crypto Investment Products Received $527M Inflows Last Week Despite Volatile Sentiment

In a week marked by rollercoaster market sentiment, digital asset investment products received weekly net inflows of $527 million (from January 27 to January 31).

The influx comes despite volatile investor sentiment primarily driven by broader market concerns—notably the Chinese DeepSeek news—which initially triggered a massive $530 million outflow on Monday, January 27. Impressively, the market staged a robust recovery, witnessing over $1 billion in inflows later that week.

Bitcoin Leads with $486M

According to a Monday report by CoinShares’ James Butterfill, Bitcoin-linked investment products were the primary beneficiaries, attracting a weekly net inflow of $486 million. Specifically, short-bitcoin saw inflows of $3.7 million for the second straight week.

XRP trails Bitcoin, with a weekly net inflow of $105 million, up from $15 million the previous week. Other notable performers include Solana, which received a positive flow of $4.5 million, and Chainlink, which received $3 million. Ethereum, on the other hand, recorded zero flows for the week.

Regionally, US-based crypto investment products led with weekly inflows of $474 million, bringing their year-to-date (YTD) flows to $5 billion. Switzerland, Germany, and Brazil followed behind, with inflows of $58 million, $22 million, and $15 million, respectively. 

However, products from Canada and Sweden experienced negative flows totaling $43 million and $3.6 million, respectively. James Butterfill linked the sell-off from Canada to the threat of US trade tariffs.

Capitalizing on Price Weakness

According to the report, blockchain equities have attracted $160 million since the beginning of the year as investors capitalize on the current price weakness to stack up more investments.

With the latest weekly inflows, digital asset investment products have now accumulated net inflows of $5.3 billion YTD.

“Given the $44bn in inflows seen in 2024, US$5.3bn inflows year-to-date (YTD) and significant price gains, the current sell-off is not unexpected,” Butterfill said.

Bitcoin traded at $94,800 at press time, representing a 4% decline in the past 24 hours. Ether, XRP, and Solana experienced more significant declines of more than 15%.