Market remains resilient with $308M in inflows despite turbulence

Market remains resilient with $308M in inflows despite turbulence

Dec 23,2024

Crypto investment products experienced $308 million in net inflows last week, marking the eleventh consecutive week of positive movement, according to CoinShares’ latest weekly report .

However, the week was not without turbulence. On Dec. 19, the industry recorded the most significant single-day withdrawal of $576 million. This tumultuous activity culminated in nearly $1 billion exiting the market in the latter part of the week.

James Butterfill, CoinShares’ head of research, explained that the recent market downturn contributed to a $17.7 billion decrease in the total assets under management (AuM) for crypto-based Exchange Traded Products (ETPs).

According to him, this market performance appears to respond to the Federal Open Market Committee’s (FOMC) latest projections, which took a more cautious stance on monetary policy.

However, he noted that:

“While these outflows may sound alarming, they comprise just 0.37% of total AuM, ranking as the 13th largest single-day outflow on record. The largest single-day outflow took place in mid-2022, when the FOMC interest rate hike prompted $540 million outflows (2.3% of AuM.)”

Bitcoin and Ethereum dominate

Bitcoin continued to dominate investor interest, pulling in $375 million in inflows despite experiencing days of outflows during the week.

Similarly, Ethereum maintained strong momentum, securing $51 million in inflows, pushing its month-to-date total above $2 billion. Year-to-date inflows for Ethereum now stand at $4.5 billion, reflecting steady confidence from investors.

In contrast, Solana saw outflows of $8.7 million, contributing to a negative monthly total of $22 million. Multi-asset investment products faced the steepest declines, losing $121 million in outflows last week.

However, some altcoins bucked the trend, with XRP , Horizen , and Polkadot recording 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.

Meanwhile, institutional trends also revealed divergent strategies. BlackRock’s iShares ETF attracted over $1.5 billion in inflows, standing out as a significant positive mover. Meanwhile, Grayscale and Fidelity ETFs experienced notable outflows of $339 million and $293 million, respectively.