Digital Asset Investment Products Received $308M in Inflows Last Week

Key Points:

• Digital asset investment products saw $308 million in net inflows last week despite significant outflows of $1 billion over the final two days.
• Bitcoin posted $375 million in net inflows, while Ethereum gained $51 million.

Digital asset investment products recorded mixed investments, with net inflows amounting to $308 million last week.

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Digital Asset Investment Products Record Mixed Trends

The period was full of drama, with the biggest single-day outflow of $576 million on December 19, while the outflow of digital asset investment products reached $1 billion in the final two days of the week.

Recent market corrections have shrunk the total AuM for digital asset ETPs by $17.7 billion. This was after the Federal Open Market Committee’s hawkish “dot plot” was issued mid-week.

Despite these, the outflows accounted for only 0.37% of the total AuM and ranked as the 13th largest single-day outflow. By comparison, the largest single-day outflow occurred in mid-2022 when a US interest rate hike saw $540 million of outflows, accounting for 2.3% of the AuM.

Altcoins See Selective Interest While Multi-Asset Products Suffer

Bitcoin was resilient to the turbulence, posting net inflows of $375 million. Short-Bitcoin investment product activity remained very minimal during the period. Multi-asset investment products suffered steep declines, as evidenced by the $121 million outflows during the same week.

While other inflows did take place with altcoins this time as well, others could attract the eyes of investors. For instance, Ethereum received inflows worth $51 million, while, on the other side, in the case of Solana, that figure was negative at $ 8.7 million.

Selective investor interest benefited such assets as XRP at $8.8 million and Horizen at $4.8 million, with Polkadot at $ 1.9 million.