Crypto investment products saw $308 million in net inflows last week, marking the eleventh consecutive week of positive movement, according to the latest weekly report from CoinShares.
The week was not without turbulence, however. On December 19, the industry recorded the largest daily withdrawal of $576 million. This tumultuous activity culminated with the market exit of nearly $1 billion in the latter part of the week.
James Butterfill, head of research at CoinShares, explained that the recent market downturn contributed to a $17.7 billion decrease in total assets under management (AuM) for exchange-traded products (ETPs) based on cryptography.
According to him, this market performance appears to meet the latest projections from the Federal Open Market Committee (FOMC), which is adopting a more cautious stance on monetary policy.
However, he noted that:
“While these outflows may seem alarming, they represent only 0.37% of total assets under management, making them the 13th largest daily outflows on record. The largest single-day outflow occurred in mid-2022, when rising FOMC interest rates led to outflows of $540 million (2.3% of assets under management.)”
Bitcoin and Ethereum dominate
Bitcoin continued to dominate investor interest, generating $375 million in inflows despite days of outflows during the week.
Likewise, Ethereum maintained strong momentum, securing $51 million in inflows, pushing its monthly total above $2 billion. Ethereum year-to-date inflows now stand at $4.5 billion, reflecting continued investor confidence.
In contrast, Solana saw outflows of $8.7 million, contributing to a negative monthly total of $22 million. Multi-asset investment products saw the biggest declines, losing $121 million in outflows last week.
However, some altcoins bucked the trend, with XRP, Horizen, and Polkadot seeing inflows of $8.8 million, $4.8 million, and $1.9 million, respectively. Butterill noted that this suggests a targeted approach among investors, focusing on specific assets despite broader market challenges.
At the same time, institutional trends have also revealed divergent strategies. BlackRock’s iShares ETF attracted more than $1.5 billion in inflows, standing out as a significant positive driver. Meanwhile, the Grayscale and Fidelity ETFs saw notable outflows of $339 million and $293 million, respectively.
