Digital asset investment products took a hit in December, with ETPs seeing a $17.7 billion drop in assets under management. CoinShares reported over $1 billion in outflows between Dec. 19 and 20, likely due to a slower pace of monetary easing. The Fed's recent rate cut to 4.25%-4.50% signaled a cautious approach to future cuts.

Despite this, digital assets funds ended the week with $308 million in positive net flows. The US led with $567 million in inflows, while Bitcoin attracted $375 million. However, multi-asset products and foreign markets faced significant outflows.