Digital assets manager CoinShares has reported that despite market-wide sell pressure, institutional investors poured hundreds of millions of dollars into crypto investment vehicles last week. According to CoinShares’ latest Digital Asset Fund Flows report, institutional crypto investment products saw net inflows of $308 million.
The report highlighted that digital asset investment products experienced a continuation of inflows last week, totaling $308 million. However, this figure was overshadowed by the largest single day of outflows on December 19, amounting to $576 million. In the final two days of the week, total outflows reached $1 billion.
CoinShares attributed last week’s outflows to the hawkish Federal Open Market Committee (FOMC) release, which led to a $17.7 billion loss in assets under management (AuM) by crypto exchange-traded products (ETPs). Despite the significant outflows, they accounted for just 0.37% of total AuM and ranked as the 13th largest single-day outflow on record. The largest single-day outflow occurred in mid-2022 when the FOMC interest rate hike prompted $540 million in outflows (2.3% of AuM).
Bitcoin (BTC) led the way with $375 million in inflows, followed by Ethereum (ETH) and XRP products with $51.3 million and $8.8 million in inflows, respectively. However, multi-asset investment products, which invest in a basket of cryptocurrencies instead of just one, saw significant outflows of $121 million last week.
In conclusion, despite the market-wide sell pressure and significant outflows, institutional investors continued to show interest in crypto investment products. Bitcoin remained the top choice for investors, while multi-asset investment products experienced notable outflows. The crypto market continues to attract institutional attention, with fluctuations in asset flows driven by market events and investor sentiment.
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