Crypto Market Outflows $1 Billion—Bitcoin and Some Altcoins Survive

CoinShares, a renowned digital asset investment provider, reported mixed crypto asset investment product performance last week.

The study showed $308 million in market inflows, continuing favorable trends. There were also $1 billion outflows.

CoinShares reported $576 million in outflows on December 19. Market were worried about investor confidence after $1 billion in withdrawals in the last two days.

These withdrawals “coincided with a price correction” and “followed the hawkish outlook” offered by the Federal Reserve at its FOMC meeting, according to CoinShares Head of Research James Butterfill.

Butterfill said the market responded to the new “dot plot,” which implied interest rate rises. Although these outflows were significant, they only affected 0.37% of overall assets under management (AuM).

Butterfill said that this was the 13th highest single-day outflow, with the largest being in mid-2022 following a similar FOMC pronouncement.

Bitcoin (BTC) managed $375 million in net inflows amid intra-week volatility. Short Bitcoin products showed little movement, reflecting investor confidence in Bitcoin's long-term prospects.

The research also showed cryptocurrency and multi-asset investment product performance differences. As investors became more asset-specific, multi-asset fund outflows reached $121 million.

Such conduct suggests investors are growing pickier and seeking assets with stronger fundamentals and growth prospects. Ethereum (ETH) led the week with $51 million inflows.

These inflows confirm Ethereum's status as a digital asset leader due to institutional interest and confidence about its technical advancements.

Some significant cryptocurrencies did not share this enthusiasm. Butterfill reports $8.7 million in outflows for Solana (SOL), contradicting Ethereum's rise.

The gap implies investor sentiment differs between these two key assets, maybe due to ecosystem changes and perceived dangers.

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