Capital inflows into crypto funds and investment products plummeted during the first week of January after setting new all-time highs in late December.
According to crypto fund manager CoinShares’ January 11th Digital Asset Fund Flows report, the first week of trading in the new year saw just $ 29 million flow into institutional crypto products. That’s a drop of more than 97% from the $ 1.09 billion invested in the week before Christmas. Volumes are likely to have subsided as traders take holidays in the new year.
However, the company also notes that December’s surging inflows were followed by recent “ evidence of potential profit-taking, ” with multiple crypto investment products registering weekly outflows in early January.
On January 8, CoinShares estimated that $ 34.4 billion in capital was held in crypto investment products – of which $ 27.5 billion, or 80%, in locked BTC funds, while $ 4.7 billion, or about 13.5% , was invested in ETH products.
The report notes that Bitcoin funds have also recently produced stronger volumes than during the December 2017 bull run, stating, “ We have seen much greater investor participation this time with net new assets of US $ 8.2. billion compared to just US $ 534 million in December 2017.. “
With an industry-wide influx that has remained consistently positive since May 2019, the report states that crypto is “ increasingly used as a store of value. ” CoinShares CEO Jean-Marie Mognetti recently stated:
“The narrative shift around Bitcoin in the past six months has been profound. Investors considered it a risk to allocate to Bitcoin. Now it is a risk not to allocate to Bitcoin. “