Crypto Asset Inflows Fall Amid Mixed Markets

Inflows into crypto asset investments have fallen to $88 million, which represented overall conflicting market sentiments.

Although investments into these assets have remained positive for the 17th consecutive week, they fell to roughly half of what has been the average over the past few weeks. 

This diminished enthusiasm reflected the overall conflicted state of the crypto markets, as polarized investors experienced divergent results. For instance, some asset providers saw outflows representing 11% of their assets under management (AuM) while others saw inflows worth 14% of their AuM. In North America, providers largely saw inflows, while European markets experienced mostly outflows. Spooked by Bitcoin’s recent price decline, some investors contributed to the panic selling, while more confident holders saw the dip as a buying opportunity. 

Crypto asset flows

Despite being the focus of the panic selling, investment products based on Bitcoin saw inflows amounting to $51 million last week. However, trading volumes across crypto investment products overall fell by 13% to $3.1 billion. Meanwhile, Ethereum-based products actually saw outflows of $17 million, after six consecutive weeks of inflows. However, representing only 0.09% of AuM, this loss is considered negligible.

While most crypto assets stagnated, a few managed to achieve some meaningful gains over the past week. For example, inflows for Solana, Tron and Multi-asset investment products totaled $19 million, $17 million, and $15 million, respectively. Tron especially stood out, as recent appreciation for it as a “world computer coin” boosted its total AuM above Cardano.

Comparative results

The weakness of these past week’s figures contrast with more robust numbers from the week prior. Despite seeing $42 million in outflows when Bitcoin plummeted on December 3, amidst trading volume double its recent average, Bitcoin-based products inflows still amounted to $145 million. Ethereum-based products experienced a similar $4.7 million capital flight that day, but totaled the week with $25 million in inflows.

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