Crypto funds recorded $1 billion in outflows late last week, including $576 million in a single day, amid market turmoil following a hawkish stance from the Fed.
Digital investment products recorded $308 million in inflows last week, but the week ended with $1 billion in outflows in the last two days, including $576 million on December 19 alone, according to Data collected by CoinShares.
In a blog post on Monday, the Jersey-headquartered company said the sharp outflows were due to market reactions to the Federal Reserve’s hawkish stance. Total assets under management for digital asset exchange-traded products fell $17.7 billion, down 0.37% in assets under management and marking the 13th largest single-day outflow on record, James Butterfill said , Head of Research at CoinShares.
Bitcoin (BTC) remained resilient, recording $375 million in net inflows this week, while Ethereum (ETH) also recorded $51 million in inflows, although at the expense of Solana, which recorded $8 million in outflows .7 million US dollars.
Multi-asset investment products saw the biggest losses, with outflows of $121 million. However, selective interest in altcoins remained, with XRP ($8.8 million), Horizen ($4.8 million), and Polkadot ($1.9 million) seeing positive inflows.
The outflows come as Bitcoin struggles to stay above $100,000 and suddenly falls below $95,000. According to CoinGlass, Bitcoin’s crash triggered a mass liquidation worth $1.4 billion, wiping out leveraged long positions within 24 hours.
