Crypto funds break 11-week hot streak of inflows with $16M net outflows, amid record $3.6B traded Crypto funds break 11-week hot streak of inflows with $16M net outflows, amid record $3.6B traded
CoinShares reports minor outflows in cryptocurrency funds overshadowed by persistent high trading volumes and equity investments.
2 min read
Updated: Dec. 18, 2023 at 10:47 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Following 11 weeks of consistent inflows into digital asset investment products, outflows totaling $16 million showcased a slight reversal in the market.
The latest CoinShares report highlights this subtle shift in the investment landscape of digital assets. The overall trading activity for the week stood at $3.6 billion, significantly higher than the year-to-date average of $1.6 billion. Despite the recent outflow, this robust trading volume spotlights a continued interest in the market.
Even in the face of a seemingly imminent spot Bitcoin ETF approval, proxy Bitcoin investments in the form of blockchain equities continued to garner positive investor sentiment. These equities saw substantial inflows totaling $122 million last week. CoinShares reports that this influx brings the total for the previous nine weeks to $294 million, marking the most significant such run on record. This robust interest in blockchain equities highlights the growing recognition of the long-term potential of blockchain technology beyond the immediate fluctuations in the crypto market.
Bitcoin was the most affected, witnessing outflows of $33 million. Even short-bitcoin positions, typically a hedge against Bitcoin’s value, saw minor outflows totaling US$0.3 million.
Contrasting with the general outflow trend, altcoins emerged as a bright spot, registering inflows of $21 million. Solana stood out with $10.6 million of inflows, far outpacing any other project. Cardano, XRP, and Chainlink followed this positive move, which collectively attracted inflows of $3 million, $2.7 million, and $2 million, respectively.
A closer look at the geographical distribution of these flows reveals a more complex picture. In the United States, outflows were most pronounced, reaching $18 million. Sweden and Germany similarly experienced outflows, albeit on a smaller scale, totaling $4 million and $10 million, respectively.
However, this trend was not universal across regions. Canada ($6.9 million) and Switzerland ($9.1 million) saw continued inflows, with Brazil at $3.5 million. CoinShares attributes this mixed pattern across different regions to profit-taking activities rather than a fundamental shift in investor sentiment toward digital assets.
Overall, the recent movements in digital asset investment reflect a diverse and dynamic market. While there are signs of cautious profit-taking, the continued high trading volumes and selective inflows into certain assets and regions indicate underlying confidence in the long-term prospects of the digital asset sector.
The full report from CoinShares is available on its website, which is released weekly on a Monday.
Mentioned in this article
Author 
Liam 'Akiba' Wright
Also known as "Akiba," Liam Wright is a reporter, podcast producer, and Editor-in-Chief at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change.
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In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Ethereum
$3,462.84
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Solana
$193.922
Solana is a high-performance blockchain platform that utilizes a unique consensus algorithm called “Proof of History” to achieve fast transaction speeds and low fees.
Cardano
$0.94575
Cardano is a decentralized public blockchain and cryptocurrency project and is fully open source.
XRP
$2.28210
The XRP Ledger is a decentralized cryptographic ledger powered by a network of peer-to-peer servers.
