Coinshares: Modest Net Inflows for Digital Assets With Gains for BTC, XRP, SOL and Losses for ETH

Coinshares: Modest Net Inflows for Digital Assets With Gains for BTC, XRP, SOL and Losses for ETH

The digital asset market experienced fluctuations last week, influenced by macroeconomic factors, particularly the U.S. Federal Reserve's hawkish outlook. Coinshares' weekly digital asset fund flows report revealed a modest net inflow of $48 million for digital assets.

In the first half of the week, investments saw a robust inflow of about $1 billion. However, macroeconomic data and the U.S. Federal Reserve's minutes, indicating a stronger U.S. economy and a more aggressive Fed stance, led to significant outflows of $940 million in the latter half.

This shift suggests that the positive sentiment surrounding the U.S. election is fading, with digital assets now being heavily impacted by macroeconomic trends.

Bitcoin (BTC) Sees Continued Strength

Bitcoin led the inflows, receiving $214 million in investments, despite experiencing the largest withdrawals in the latter part of the week. Nevertheless, BTC remains the top performer for the year, having attracted $799 million in inflows to date.

Ethereum (ETH) Faces Significant Losses

Ethereum, on the other hand, saw outflows of $256 million last week, making it the worst performer in terms of net investments.

Solana (SOL) and XRP Witness Modest Gains

Solana and XRP, however, fared better. Solana saw inflows of $15 million, and XRP, driven in part by legal developments surrounding its SEC case, enjoyed inflows of $41 million. These inflows reflect growing optimism ahead of the SEC appeal deadline on January 15.

Altcoins and Regional Trends

Despite the general downtrend in the broader market, some altcoins performed well, including Aave, Stellar, and Polkadot, which recorded inflows of $2.9 million, $2.7 million, and $1.6 million, respectively.

Regionally, the U.S. continued to lead in terms of inflows, with $79 million, while Germany followed closely with $52.4 million. On the other hand, Switzerland and Hong Kong experienced significant outflows, with $85.3 million and $36.6 million, respectively.