Crypto Resilience: $308M Inflows Boost Bitcoin, Ethereum, and XRP!

Despite some market turbulence, crypto investment products experienced a notable surge in capital inflows last week with Bitcoin, Ethereum, and XRP leading the charge!

To put things into perspective, the crypto landscape is currently navigating through a significant correction. Bitcoin has seen a drop from its peak of $108,000, landing at a current price of $94,980. This decline has sent shockwaves through the industry, reducing the global market capitalization to $3.28 trillion.

Bearish sentiment was further fueled by hawkish comments from Federal Reserve Chair Jerome Powell. However, in a surprising turn of events, the latest fund flow report from CoinShares revealed that crypto investment products still managed to welcome an impressive net inflow of $308 million last week.

This resilience is especially noteworthy considering the staggering outflows of $1 billion that occurred in the last two days of the week, including a notable $576 million on December 19 alone.

Even amidst these withdrawals, the overall weekly inflows remained in the green, showcasing investor confidence in leading assets like Bitcoin, Ethereum, and XRP. Yet, recent market corrections have clipped a hefty $17.7 billion off the total assets under management (AUM) for digital asset products.

Bitcoin, Ethereum, and XRP Lead the Pack

Bitcoin stood out as the favored investment, raking in $375 million in weekly inflows and a whopping $5.04 billion for the month. Ethereum wasn’t far behind, drawing in $51.3 million over the week and $2.3 billion in December. Meanwhile, XRP claimed $8.8 million in inflows for the week and $288.8 million for the month.

In contrast, multi-asset products faced the largest outflows of $121.4 million, signaling a clear shift towards focused investments in individual cryptocurrencies. Interestingly, Solana also reported negative flows, with $8.7 million in weekly outflows, despite positive updates regarding a staking ETP in Europe.

Mixed Results Among Investment Providers

When looking at investment providers, BlackRock’s iShares ETFs emerged as the clear leader, boasting an impressive $1.59 billion in weekly inflows and a jaw-dropping $6.83 billion for the month. Remarkably, BlackRock was the sole provider to record net inflows last week.

On the other hand, Fidelity ETFs saw the largest net outflows, totaling $293 million, although they ended the month on a positive note with $697 million. Meanwhile, CoinShares XBT and ARK 21Shares experienced net outflows of $44 million and $171 million, respectively.

ARK 21Shares is also facing ongoing outflows this December, currently totaling $149 million. Conversely, Grayscale Investments reported substantial weekly outflows of $339 million, accumulating to $824 million for the month.

Insights Into Country-Specific Trends

When we zoom in on country-specific trends, the United States has emerged as a powerhouse in investment flows, contributing a whopping $567 million in weekly inflows and a staggering $7.4 billion in December.

Germany and Switzerland exhibited varying trends. Germany encountered $74.7 million in outflows last week but saw positive monthly inflows of $73.7 million, while Switzerland recorded $95.1 million in weekly outflows and $93.1 million for the month.

Canada and Sweden faced significant weekly outflows of $60.1 million and $42.3 million, respectively. Yet, smaller markets such as Australia and Brazil experienced encouraging inflows of $10.2 million and $16.6 million for the week.