$534 Million Exit: DeepSeek Debut Sends Shockwaves Through Crypto ETFs
DeepSeek's market entry triggered significant volatility in the cryptocurrency sector, leading to substantial capital outflows and a bearish market sentiment. Crypto mining stocks, including Riot Platforms, Cleanspark, and MARA Holdings, faced notable losses. Spot Bitcoin ETFs experienced outflows of $457.6 million, while Ethereum ETFs lost $136.2 million, contributing to total ETP outflows exceeding $534 million. In contrast, major US tech stocks like Nvidia, Apple, and Amazon showed resilience and recovered quickly. Despite the turmoil, XRP emerged as a strong performer, with ETPs gaining $2.1 million and high-net-worth wallets accumulating 120 million XRP during the downturn. The incident underscored the cryptocurrency market's vulnerability to sudden shocks, with varying asset performances indicating potential shifts in market dynamics.
