Crypto investment products saw decent capital inflows last week, with Bitcoin, Ethereum and XRP leading, despite the market turbulence.
For context, the crypto market is grappling with a major correction, with Bitcoin tumbling from its all-time high of $108,000 to the current price of $94,980. This drop has reverberated across the scene, bringing the global market capitalization down to $3.28 trillion.
Hawkish remarks from Federal Reserve Chair Jerome Powell fueled bearish sentiment. Despite this downturn, the latest fund flow report from CoinShares confirms that crypto investment products managed net inflows of $308 million last week.
This resilience contrasts with sharp outflows of $1 billion during the final two days of the week, including $576 million on December 19 alone.
Even with these withdrawals, weekly inflows remained positive, confirming investor optimism in leading assets like Bitcoin, Ethereum, and XRP. However, recent corrections shaved $17.7 billion off the total assets under management (AUM) for digital asset products.
Bitcoin, Ethereum, and XRP Dominate Asset Flows
Bitcoin emerged as the top choice for 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 secured $8.8 million in inflows for the week and $288.8 million for the month.
However, multi-asset products suffered the largest weekly outflows of $121.4 million. This confirms a shift toward investments in individual crypto assets. Interestingly, Solana also recorded negative flows, with $8.7 million in weekly outflows despite positive reports around a staking ETP in Europe.
Investment Providers See Mixed Results
Among providers, BlackRock’s iShares ETFs led with impressive weekly inflows of $1.59 billion and monthly inflows of $6.83 billion. In an interesting turn of events, BlackRock’s products were the only ones that recorded net inflows last week.
Notably, Fidelity ETFs led the weekly outflows with $293 million in net outflows but a positive $697 million for the month. CoinShares XBT and ARK 21Shares saw net weekly outflows of $44 million and $171 million, respectively.
ARK 21Shares is also witnessing outflows in December, currently worth $149 million. Meanwhile, Grayscale Investments registered significant weekly outflows of $339 million, with monthly outflows amounting to $824 million.
Country-Specific Trends
Regarding countries, the United States dominated investment flows, contributing $567 million in weekly inflows and $7.4 billion in December.
Germany and Switzerland showed contrasting patterns. Notably, Germany saw outflows of $74.7 million last week but positive monthly inflows of $73.7 million. Switzerland recorded $95.1 million in weekly outflows but a $93.1 million inflow for the month.
Canada and Sweden experienced significant weekly outflows, at $60.1 million and $42.3 million, respectively. Smaller markets, including Australia and Brazil, witnessed positive inflows of $10.2 million and $16.6 million for the week.