Last week saw $308 million in inflows into digital asset investment products, although this was overshadowed by a major 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, which is likely influenced by the hawkish stance of the Federal Reserve’s dot plot published on Wednesday.
While these outflows are significant, it is also important to note that the figures represent only 0.37% of total AuM and rank as the 13th largest single-day outflow in history, according to the latest edition of CoinShares’ Digital Asset Fund Flows Weekly Report.
In comparison, 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 saw some outflows during the week, it ended with net inflows of $375 million, indicating strong market sentiment. On the other hand, short-bitcoin products recorded only $0.4 million in inflows, reflecting a lack of significant interest from short-sellers.
The “most dramatic” outflows came 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 over the past week, showing 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.
Meanwhile, Ethereum continued its positive streak and attracted $51 million, while Solana experienced outflows of $8.7 million during the same period.
The US continued to lead in digital asset inflows, drawing $567 million over the past week. Brazil and Australia followed with $16.6 million and $10.2 million in inflows, respectively, while other regions saw 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. Outflows were also recorded in Sweden and Hong Kong, with $42.1 million and $12.1 million, respectively.