Crypto funds saw $1 billion in outflows late last week, including $576 million in a single day, amid market jitters following the Fed’s hawkish stance.
Digital asset investment products saw $308 million in inflows last week, but the week ended with $1 billion in outflows over the past two days, including $576 million in just day of December 19, according to data collected by CoinShares.
In a blog post published Monday, the Jersey-based company said the strong outflows came after market reactions to the Federal Reserve’s hawkish stance. Total assets under management for digital asset exchange-traded products decreased by $17.7 billion, representing a 0.37% decline in assets under management, marking the 13th largest outflow in a single day on record, said James Butterfill, head of research at CoinShares.
Bitcoin (BTC) remained resilient, posting $375 million in net inflows for the week, while Ethereum (ETH) also saw $51 million in inflows, although this came at the expense of Solana, which recorded $8.7 million in releases.
Multi-asset investment products suffered the largest losses, with $121 million in capital outflows. However, selective interest in altcoins persisted, 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 the $100,000 mark, falling below $95,000 in an instant. According to CoinGlass, Bitcoin’s fall triggered a massive $1.4 billion liquidation, wiping out leveraged long positions within 24 hours.
