Bitcoin Ends Week with $375M Inflows as Multi-Asset Products Face $121M in Losses

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As a seasoned crypto investor with a decade of experience navigating market highs and lows, I find myself cautiously optimistic amidst the latest inflows and outflows reported by CoinShares. While the recent $1 billion weekly outflow is concerning, it’s important to remember that these figures represent just a fraction of the total assets under management (AuM).

Last week brought about an influx of $308 million into digital asset investment products, but this was eclipsed by a significant withdrawal of $576 million on December 19th. In the final two days of the week, there were overall withdrawals amounting to $1 billion.

Due to recent price drops, the total value managed by Digital Asset Exchange-Traded Products (ETPs) decreased by approximately $17.7 billion. This decline may be related to the cautious monetary policy indicated in the Federal Reserve’s dot plot, as revealed on Wednesday.

Bitcoin Posts Strong Inflows

It’s worth pointing out that while these outflows are substantial, they account for just a tiny fraction – only 0.37% – of the total assets under management (AuM). Moreover, these figures rank as the 13th largest single-day outflow ever recorded, based on the most recent edition of CoinShares’ Digital Asset Fund Flows Weekly Report.

During that period in mid-2022, the greatest one-day withdrawal was recorded, amounting to approximately 2.3% (or $540 million) of the total assets under management, after the Federal Reserve increased its interest rates.

Despite experiencing some Bitcoin outflows during the week, there was a total inflow of approximately $375 million, demonstrating positive market sentiments. Conversely, investments in short-Bitcoin products saw minimal inflows worth just $0.4 million, suggesting that short-selling interest remains relatively low.

Last week, I observed significant withdrawals – the most notable ones – originating from multi-asset investment solutions, with a steep decrease of approximately $121 million in value.

Over the last week, XRP saw the highest investment with approximately $8.8 million, while Horizen and Polkadot followed closely behind with around $4.8 million and $1.9 million respectively. This trend suggests that investors are leaning towards more specific investment opportunities. Chainlink, Cardano, and Litecoin also received modest investments of about $1.7 million, $0.7 million, and $0.6 million each.

During that timeframe, Ethereum maintained a favorable trend and drew in approximately $51 million, while on the other hand, Solana saw withdrawals totaling around $8.7 million.

Switzerland Faces Largest Digital Asset Outflows

During the last week, the United States maintained its position as a frontrunner in digital asset investments, attracting approximately $567 million. Coming in second was Brazil with an inflow of $16.6 million, followed by Australia with $10.2 million. The rest of the regions experienced outflows for digital assets.

During the specified timeframe, Switzerland led the way with the highest amount of outflows at approximately $95.1 million. Germany and Canada followed closely behind, registering outflows of about $74.7 million and $60.1 million respectively. Outflows were also observed in Sweden and Hong Kong, totaling around $42.1 million and $12.1 million respectively.

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2024-12-25 01:24