DeepSeek Panic and Trump Tariffs Pushed Down ETPs’ Inflows – CoinShares
Last week, DeepSeek panic and other market fears caused crypto exchange-traded products (ETPs) to underperform, limiting weekly inflows to $527 million. According to CoinShares’ latest report, Crypto ETPs’ inflows fell 72% in the past trading week from the $1.9 billion recorded the week before.
CoinShares related the accelerated selling to worries about China’s AI platform DeepSeek and the global trade war sparked by US President Donald Trump’s drive for higher import taxes. James Butterfill, research director at CoinShares, said that outflows of $530 million were recorded on January 27 alone due to DeepSeek news.
Last week, $486 million was deposited into Bitcoin ETPs, increasing year-to-date (YTD) inflows to $4.9 billion. The week’s inflows into short-BTC contracts totaled $3.7 million, a 27% decrease from the week before.
Together with Litecoin, Ether (ETH)–based ETPs were one of two cryptocurrency ETPs to experience zero inflows last week. ETH ETPs have received $177 million in inflows so far in 2025.
However, $14.5M weekly inflows into XRP investment products caused this product to gain investor attention. With $105 million in YTD inflows, XRP is currently the second-best-performing altcoin for ETPs, according to CoinShares.
Grayscale ETP Outflows increased by 140% – CoinShares
According to CoinShares data, investors in crypto ETPs were more active in selling crypto assets from Bitwise and Grayscale Investments. Last week, Grayscale had outflows of $298 million, a 140% increase over the $124 million withdrawals the week before.
Hence, Grayscale’s cryptocurrency investment products have recorded $690 million in outflows this year. Last week, Bitwise’s cryptocurrency exchange-traded funds (ETF) saw $126 million in withdrawals, 560% higher than the previous week.
BlackRock’s crypto ETF fund inflow dropped by 58% last week, posting $918 million in inflows compared to $1.4 billion the week before.
The Jim Cramer Effect and USDT Delistings in the EU
Various developments in the cryptocurrency market may have contributed to last week’s slower inflows, including market concerns over Trump’s tariffs and DeepSeek issues. In a recent interview, Jim Cramer, a former hedge fund manager, advocated for more Bitcoin ownership.
However, he cautioned against investing in MicroStrategy, the largest corporate Bitcoin holder. One market watcher commented on X, saying that the inverse Cramer effect will always happen when it comes to Bitcoin’s price action and will be studied for many generations.
The sell-off also occurred after several European Union exchanges delisted Tether USDT, the biggest stablecoin available, based on new regional cryptocurrency laws.
Trump-linked Organizations Profit $100M from Official Trump Meme Coin Fees
President Donald Trump’s Official Trump (TRUMP) meme coin has made whales much money but hasn’t been profitable for small investors. According to data, three firms, including Chainalysis and Merkle Science, entities behind the meme coin, including a company associated with Donald Trump, have made up to $100 million in trading fees in less than two weeks.
They said that by January 30, trading costs on the TRUMP meme coin were between $86 million and $100 million. According to these data, one of the beneficiaries is CIC Digital, a business that Trump owns.
The firms stated that it’s unclear what percentage, if any, of the fees have gone directly to Trump. However, according to the meme coin’s official website, CIC Digital would receive trading income derived from trading activities.
Investors first traded the Official Trump meme coin on Meteora, a decentralized financial trading platform. Traders used it to pay fees. According to Chainalysis, at least 50 significant investors have made more than $10 million apiece.
Approximately 200,000 wallets containing smaller amounts of money also experienced a loss. Meanwhile, 91 fraudulent dApps and 6,800 phony tokens flooded the market after TRUMP’s $72 billion market cap launch.
Within 48 hours of debut, scammers increased their efforts to take advantage of the excitement, causing a 206% increase in tokens using the “Trump” moniker, from 3,300 to 6,800, according to blockchain technology forensic firm Blockaid.
This made it more difficult for investors to identify fakes.
