Bitcoin and Ethereum ETFs Lose $534M Amid AI Chaos; XRP Investors Seize Opportunity

Bitcoin and Ethereum ETFs suffered significant losses on Tuesday, with a combined $534 million pulled from their exchange-traded products (ETPs) amid market chaos triggered by the launch of DeepSeek, a new AI model from China. The broader markets, including the NASDAQ, experienced a shake-up, with crypto assets following suit.

James Butterfill, an analyst at CoinShares, reported that Bitcoin ETPs saw outflows of $442 million, while Ethereum ETPs experienced outflows of $99 million. This marked one of the most substantial single-day movements in recent memory for crypto ETPs.

While most assets struggled, XRP stood out as an exception. XRP ETPs saw inflows of $2.1 million on the same day, bucking the trend of broad-based outflows. On the blockchain, significant XRP holders, primarily millionaire wallets, accumulated 120 million XRP during the dip, suggesting a strategic buying opportunity rather than panic selling.

The divergent responses to the market chaos indicate that investors are adopting different strategies based on their risk appetites and market views. Bitcoin and Ethereum investors chose to cut losses and sit on the sidelines, while XRP investors saw the dip as an opportunity to accumulate more tokens.

The markets continue to adjust to the noise created by DeepSeek's debut, but the varied reactions to the chaos are evident. While Bitcoin and Ethereum struggled under pressure, XRP managed to turn the situation into an opportunity for accumulation.