Key Investment Flows and Trends
- •Bitcoin & Altcoins: Bitcoin drew $352M, XRP $244M, and Chainlink $52.8M, showing diversified investor interest.
- •Digital Asset Issuer Divergence: ProShares gained $210M, while BlackRock’s iShares lost $105M, reflecting contrasting fund flows.
- •Regional Split: U.S. led with $483M inflows, but Sweden posted $5.6M outflows, totaling $836M in yearly losses.
Digital asset investment products staged a notable rebound last week, attracting $716 million in inflows across ETPs. The recovery marks the second consecutive week of gains following a sharp $5.5 billion sell-off in November. CoinShares reported that total assets under management climbed back above $180 billion, though still below the $264 billion peak. The renewed momentum suggests investors are cautiously re-engaging with crypto markets amid stabilizing macroeconomic conditions.
Bitcoin and Altcoins Drive Digital Asset Inflows
Bitcoin remained the dominant force, securing $352 million in inflows. XRP followed with $244 million, reflecting strong investor appetite for established digital assets. Chainlink stood out, recording $52.8 million, which represents 54% of its total AUM. Ether contributed $39 million, while short Bitcoin products saw $19 million in outflows, signaling reduced bearish sentiment. The distribution highlights how investors are diversifying exposure while still favoring leading tokens.
Issuer Performance Highlights Contrasts
ProShares led issuers with $210 million in inflows, underscoring demand for its U.S.-listed products. Conversely, BlackRock’s iShares reported $105 million in outflows despite being the largest issuer by AUM. ARK Invest and Grayscale also faced withdrawals of $78 million and $7 million, respectively. These contrasting flows reveal shifting investor preferences, with some issuers benefiting from renewed optimism while others contend with redemptions.
Regional Trends Emphasize U.S. Strength
The United States dominated geographically, attracting $483 million in inflows. Germany followed with $97 million, and Canada added $80.7 million. Sweden diverged, recording $5.6 million in outflows, pushing its year-to-date losses to $836 million, the highest globally. This regional split underscores how local sentiment and regulatory environments continue to shape fund flows, with North America leading the recovery.
Market Context and Investor Outlook
CoinShares noted minor midweek outflows linked to U.S. inflation data, yet overall sentiment remained positive. The $716 million inflow represents an 8% rebound from November lows, suggesting investors are cautiously optimistic. While AUM levels remain below historic highs, consecutive weekly gains point to a potential shift in market psychology as macroeconomic pressures ease and institutional participation strengthens.