Cryptocurrency asset funds saw net inflows!

Global digital asset exchange traded products (ETPs) witnessed outflows during the week following the Federal Reserve’s interest rate cut on 18 December.

Global digital asset exchange traded products (ETPs) saw outflows in the week following the Federal Reserve’s interest rate cut on 18 December. However, despite increased market volatility, it recorded a net inflow of $308 million last week.

CoinShares Head of Research James Butterfill said that despite the overall net inflows for digital asset ETPs last week, large market outflows towards the end of last week should not go unnoticed.

“Net inflows masked the largest single-day outflows on 19 December of $576 million with total outflows in the last two days of the week reaching $1 billion.”

Bitcoin saw a net inflow of $375 million during the week. Leading altcoin Ethereum added $51 million.

Solana (SOL Coin) saw an outflow of $8.7 million, according to CoinShares data. Meanwhile, Litecoin (LTC), Cardano (ADA), Chainlink (LINK) also saw inflows.

The net inflows highlighted continued institutional interest in digital assets amid the changing macroeconomic landscape. However, multi-asset investment products saw more pronounced outflows, totaling $121 million, according to Butterfill.

“Many altcoins continue to see inflows, such as XRP at $8.8 million, Horizen at $4.8 million and Polkadot at $1.9 million, but these trends show that investors are becoming more selective within the digital asset market.”

The press conference held by the Fed after its 18 December meeting influenced market movements, according to Butterfill. As you follow on Kriptokoin.com, Fed Chairman Jerome Powell’s comments after the meeting triggered risk-off sentiment in the markets.

Among the key highlights were the Fed’s upward revision of 2025 core PCE inflation forecasts from 2.2% to 2.5%. Furthermore, the Fed signaled only two rate cuts in 2025, down from the four cuts previously projected.

According to OTC trading desk analysts at Wintermute, the market decline, which began in the middle of last week, mirrored losses in equities and bonds as investors adjusted their risk exposures ahead of the low-liquidity holiday period.

Derivatives traders maintained their bets on lower token prices in the form of puts, noted Wintermute analysts.