The last weekly report from CoinShares, a leading European digital asset investment firm, reveals notable changes in crypto asset fund flows. The report highlights inflows of $48 million into digital asset investment products over the past week.
However, the overall picture appears to be more complex, reflecting the impact of macroeconomic factors and investor sentiment on fund flows.
James Butterfill, head of research at CoinShares, noted that while nearly $1 billion flowed into digital asset products during the first half of the week, the release of new macroeconomic data and the U.S. Federal Reserve minutes. They caused significant outflows of $940 million in the “second half.”
Butterfill wrote:
The release of new macroeconomic data and minutes from the US Federal Reserve (which pointed to a stronger US economy and a more aggressive Federal Reserve) led to capital outflows of $940 million in the second half. This suggests that the post-US election honeymoon is over and macroeconomic data is once again a key driver of asset prices.
Bitcoin Leads Inflows While Ethereum Faces Outflows
According to the CoinShares report, Bitcoin maintained its dominance in fund inflows last week, attracting $214 million. Despite being subject to outflows later in the period, Bitcoin remains the “best-performing asset” so far this year, with cumulative inflows of $799 million.
This performance highlights its continued appeal to investors seeking exposure to digital assets amid broader market fluctuations. By contrast, Ethereum faced significant pressure, recording outflows of $256 million.
Butterfill attributed this trend to a broader sell-off in the tech sector rather than specific issues with the Ethereum network itself. Meanwhile, Solana stood out as a positive exception, attracting inflows of $15 million, suggesting resilience in certain altcoin sectors even amid challenging market conditions.
Overall, altcoins showed mixed but generally positive trends despite disappointing price performance. Aave, Stellar, and Polkadot recorded inflows of $2.9 million, $2.7 million, and $1.6 million, respectively, indicating sustained investor interest in these projects.
This trend reflects a growing diversification in investment strategies as altcoins continue to attract niche markets and developers. XRP recorded inflows of $41 million, and Butterfill linked this activity to ongoing political and legal developments. The head of research at CoinShares noted:
XRP saw substantial inflows of $41 million last week and remains driven primarily by political and legal factors, with the inflows suggesting further optimism ahead of the January 15 SEC appeal deadline.
Global Crypto Market Outlook
The global crypto market has faced notable bearish sentiment over the past week, losing nearly $400 million of its total market capitalization. Notably, the valuation has fallen from $3.662 trillion last Monday to $3.283 trillion today.
This significant drop in market capitalization can mainly be attributed to Bitcoin’s continued bearish trend. At the time of writing, Bitcoin has fallen below $91,000, bringing its price to trading at $90,704, a decline of 3.9% over the past day.
Featured image created with DALL-E, TradingView chart
