Digital asset management company CoinShares has reported that institutional investors injected hundreds of millions of dollars into cryptocurrency investment products last week despite widespread market sell-offs. According to CoinShares’ latest Digital Asset Fund Flows report, institutional crypto investment products saw net inflows of $308 million last week.
“Digital asset investment products saw a continuation of inflows last week totaling US$308m, although this masks the largest single day of outflows on the 19th December totaling US$576m, with total outflows in the final 2 days of last week at US$1bn.”
The hawkish Federal Open Market Committee (FOMC) release last week led to a $17.7 billion loss in assets under management (AuM) by crypto exchange-traded products (ETPs), according to CoinShares.
“While these outflows may sound alarming, they comprise just 0.37% of total AuM, ranking as the 13th largest single-day outflow on record. The largest single-day outflow took place in mid-2022, when the FOMC interest rate hike prompted US$540m outflows (2.3% of AuM.)”
Bitcoin (BTC) saw the highest inflows with $375 million, 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, experienced significant outflows.
“The most dramatic flows were from multi-asset investment products, which saw US$121m of outflows last week.”
