CoinShares: Net Flows into Digital Asset Investment Funds This Past Week Was $48M

Last week, digital currency investment products recorded a net influx of $48 million.

The CoinShares report noted that new macroeconomic data and the Federal Reserve’s minutes caused outflows of $940 million in the second half of the week, even though about $1 billion flowed in within the first half. The US Fed’s minutes indicated a more robust United States economy, leading to a more conservative stance regarding interest rates.

This data suggests that the bullishness in the financial markets following the United States election period is over and that macroeconomic data was the primary influencer of assets’ values.

Digital Asset Investment Funds Inflow. | Source: CoinShares

Bitcoin Products Outperformed Other Digital Asset Products – CoinShares

Last week, the total inflows into Bitcoin (BTC) investment products was $214 million. It outperformed all other digital assets as it now has an influx of $799 million this year, even though its outflow was the largest later in the week.

According to CoinMarketCap data, BTC’s price declined by 9.8% in the past week and now trades at $91,937.

Like their Bitcoin counterparts, Ethereum (ETH) investment products recorded huge outflows this past week, totaling $256 million. CoinShares believes this was caused more by the general tech sell-offs than any particular problem with the digital currency.

ETH trades at $2,991 at the time of writing, down 18.88% in the last 7 days. On the other hand, Solana products attracted $15 million in inflows.

CoinShares also stated that $41 million flowed into XRP investment products during the same period. However, these XRP inflows were mainly motivated by political and legal expectations, especially the increased confidence of victory ahead of the United States Securities and Exchange (SEC) appeal regarding its court case with Ripple Labs on January 15.

Despite their poor market performances, altcoins like Aave, Stellar, and Polkadot still recorded inflows of $2.9m, $2.7m, and $1.6m, respectively. CoinShares noted that 2024 was the best year for digital investment products, with net flows of $44.2 billion.