Crypto investment products saw decent capital inflows last week, with Bitcoin, Ethereum and XRP leading the way, despite the market turmoil.
As a reminder, the crypto market is in the grip of a major correction, with Bitcoin falling from its all-time high of $108,000 to the current price of $94,980. This drop reverberated across the board, bringing the global market capitalization down to $3.28 trillion.
Warmongering remarks from Federal Reserve Chairman Jerome Powell fueled bearish sentiment. Despite this slowdown, the latest fund flows report of CoinShares confirms that crypto investment products generated net inflows of $308 million last week.
This resilience contrasts with strong outflows of $1 billion over the last two days of the week, including $576 million on December 19 alone.
Even with these withdrawals, weekly inflows remained positive, confirming investor optimism towards top-tier assets like Bitcoin, Ethereum and XRP. However, recent corrections reduced total assets under management (AUM) for digital asset products by $17.7 billion.
Bitcoin, Ethereum and XRP dominate asset flows
Bitcoin has become the top choice of investors, recording $375 million in weekly inflows and $5.04 billion for the month. Ethereum followed, attracting $51.3 million over the week and $2.3 billion in December. Meanwhile, XRP saw $8.8 million in inflows for the week and $288.8 million for the month.
However, multi-asset products suffered the largest weekly outflows at $121.4 million. This confirms a shift towards investments in individual crypto assets. Interestingly, Solana also saw negative flows, with $8.7 million in weekly releases despite positive reports around a staking ETP in Europe.
Investment providers see mixed results
Among the providers, BlackRock iShares ETF led with impressive weekly inflows of $1.59 billion and monthly inflows of $6.83 billion. Interestingly, BlackRock’s products were the only ones to see net inflows last week.
Notably, Fidelity ETFs dominated weekly outflows with $293 million in net outflows but a positive $697 million for the month. CoinShares XBT and ARK 21Shares saw weekly net outflows of $44 million and $171 million, respectively.
ARK 21Shares is also experiencing capital outflows in December, currently worth $149 million. In the meantime, Grayscale Investments recorded significant weekly outflows of $339 million, with monthly outflows amounting to $824 million.
Country-specific trends
Concerning the countries, the UNITED STATES dominated investment flows, contributing $567 million in weekly inflows and $7.4 billion in December.
Germany and Switzerland showed contrasting trends. Notably, Germany recorded capital outflows of $74.7 million last week, but positive monthly inflows of $73.7 million. Switzerland recorded $95.1 million in weekly outflows but an inflow of $93.1 million for the month.
Canada and Sweden saw significant weekly outflows, amounting to $60.1 million and $42.3 million, respectively. Smaller markets including Australia and Brazil saw positive inflows of $10.2 million and $16.6 million for the week.
DisClamier: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinions of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.
