"Crypto Chaos: Ethereum ETF Flows Plummet Amid Market Turmoil"

Bitcoin and Ethereum ETF Flows Fall Amid Crypto Market Chaos

Crypto markets experienced a tumultuous week, with Ethereum investment products seeing zero net flows for the first time since the launch of U.S.-based ETFs last year. This development comes amidst a backdrop of geopolitical instability and market volatility, which has impacted the broader crypto landscape.

Ethereum, the second-largest cryptocurrency, has been particularly affected by recent events. Its price dropped to as low as $2,368 on Monday morning Eastern Time, reflecting investor concerns about trade wars and tariffs. Despite a slight recovery, Ethereum's price currently stands at $2,740, according to CoinGecko.

James Butterfill, Head of Research at CoinShares, attributed Ethereum's zero net flows to its greater exposure to the technology sector and the global growth outlook. He noted that it was rare for Ethereum investment products to have net zero flows, and sentiment towards the cryptocurrency remains subdued.

The crypto market was rocked last week following the release of a new open-source large language model by Chinese artificial intelligence startup DeepSeek. The model, which purportedly cost dramatically less to train than the biggest U.S. models, led tech investors to rapidly sell their stakes in American AI-related companies, pulling crypto prices down with them.

Both Bitcoin and Ethereum were hit hard by the sell-off, but Bitcoin recovered, with investors plugging a total of $486 million into funds around the world giving exposure to the cryptocurrency. Despite the initial sell-off, the market rebounded with over $1 billion in inflows later in the week.

The trend changed somewhat following the AI-related sell-off, and crypto prices have since faced downward pressure after U.S. President Donald Trump announced tariffs against Canada, China, and Mexico on Saturday. However, after President Trump revealed that he and Mexican President Claudia Sheinbaum had a friendly conversation and delayed the U.S. tariffs and planned Mexican retaliation, crypto prices rebounded somewhat, though Ethereum continues to struggle.

The biggest coin is now down nearly 8% over the past day, while Bitcoin is up 4% to $101,843. CoinShares added that of all the altcoins with ETFs around the globe, XRP is the second most popular lately