Last week witnessed $308 million in inflows into digital asset investment products, although this was eclipsed by a substantial outflow of $576 million on December 19th. The last two days of the week saw total outflows of $1 billion. The recent price declines led to a $17.7 billion drop in the total assets under management (AuM) for Digital Asset ETPs, likely influenced by the Federal Reserve’s hawkish stance reflected in the dot plot published on Wednesday.
While these outflows are significant, they represent only 0.37% of total AuM and rank as the 13th largest single-day outflow in history, according to CoinShares’ Digital Asset Fund Flows Weekly. For context, the largest single-day outflow occurred in mid-2022 when a $540 million outflow (2.3% of AuM) followed the Fed’s interest rate hike. Although Bitcoin experienced some outflows during the week, it concluded with net inflows of $375 million, indicating robust market sentiment. Conversely, short-bitcoin products recorded a mere $0.4 million in inflows, signifying a lack of substantial interest from short-sellers. The most dramatic outflows originated from multi-asset investment products, which saw a sharp decline of $121 million last week. On the altcoin front, XRP led the inflows with $8.8 million, followed by Horizen at $4.8 million and Polkadot at $1.9 million, suggesting a trend of investors favoring more selective opportunities. Chainlink, Cardano, and Litecoin also received modest inflows of $1.7 million, $0.7 million, and $0.6 million, respectively. The US continued to lead in digital asset inflows, attracting $567 million over the past week. Brazil and Australia followed with $16.6 million and $10.2 million in inflows, respectively, while other regions witnessed outflows. Topping the chart with the most outflows during the same period was Switzerland recording $95.1 million, followed by Germany and Canada with $74.7 million and $60.1 million
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Source: CoinDesk - 🏆 291. / 63 Read more »