Daniel Walker
Leading global asset managers including BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares reported net inflows of $48 million into cryptocurrency funds last week despite market fluctuations driven by macroeconomic developments, according to CoinShares.
Early in the week, crypto investment products attracted nearly $1 billion in inflows. However, the release of key macroeconomic data and minutes from the Federal Open Market Committee (FOMC) hinted at a robust U.S. economy and a more aggressive Federal Reserve stance, resulting in $940 million in outflows during the latter part of the week, noted James Butterfill, CoinSharesโ Head of Research.
โThe post-election market rally seems to have subsided, and macroeconomic conditions are once again steering asset prices,โ Butterfill said.
Mixed Trends for Bitcoin and Ethereum Investment Products
Despite volatility, Bitcoin-based investment funds led global inflows, securing $214 million, even after experiencing significant outflows mid-week. Year-to-date, these products have accumulated $799 million in net inflows, maintaining their position as the top-performing crypto funds.
In the U.S., spot Bitcoin ETFs contributed $312.8 million to the total inflows, according to The Block, though trading activity slowed due to a national day of mourning for former President Jimmy Carter on Thursday.
Conversely, Ethereum-focused funds faced heavy losses, with $256 million in net outflows attributed to a broader technology sector sell-off rather than specific issues with the asset itself. This coincided with a 3.5% drop in the Nasdaq 100 over the week. U.S. spot Ethereum ETFs accounted for $186 million of the outflows.
Despite market downturns, XRP investment products attracted $41 million in inflows, fueled by optimism ahead of the January 15 SEC appeal deadline in the ongoing Ripple case. Solana-based funds also experienced a positive week, gaining $15 million in inflows.
Other altcoin products, including those for Aave, Stellar, and Polkadot, saw modest but steady inflows despite declining market prices.
Price Performance Overview
- Bitcoin (BTC): Fell 7.8% over the past week, currently trading at $90,897, per PRIME.
- Ethereum (ETH): Declined 14.8%, with prices now at $3,063.
Despite current price pressures, the ongoing activity in investment products signals continued market engagement amid shifting economic dynamics.
