Key Points
Crypto Fund Outflows Amid Market Jitters
Crypto funds witnessed an outflow of $1 billion towards the end of last week. This included a single-day outflow of $576 million. This happened amidst market unease following a hawkish stance from the Federal Reserve.
Digital asset investment products reported inflows of $308 million last week. However, the week concluded with $1 billion in outflows over the last two days. This included $576 million on December 19 alone, as per data from CoinShares.
In a recent blog post, CoinShares, a firm based in Jersey, stated these sharp outflows were a reaction to the Federal Reserve’s hawkish stance. The total assets under management for digital asset exchange-traded products dropped by $17.7 billion. This represented a 0.37% decline in assets under management. CoinShares’ head of research, James Butterfill, noted this as the 13th largest single-day outflow on record.
Bitcoin and Ethereum Remain Resilient
Despite this, Bitcoin (BTC) remained resilient, reporting $375 million in net inflows for the week. Ethereum (ETH) also recorded $51 million in inflows. However, these inflows were at the expense of Solana, which saw $8.7 million in outflows.
Multi-asset investment products faced the most significant losses, with $121 million in outflows. Yet, selective interest in altcoins remained, with XRP ($8.8 million), Horizen ($4.8 million), and Polkadot ($1.9 million) recording positive inflows.
These outflows occurred as Bitcoin struggled to remain above the $100,000 mark, momentarily falling below $95,000. According to CoinGlass, Bitcoin’s decline triggered a $1.4 billion mass liquidation event, erasing leveraged long positions within 24 hours.