Global digital asset exchange-traded products (ETPs) recorded net inflows of $308 million last week, despite intra-week outflows and heightened market volatility following the Federal Reserve’s Dec. 18 rate cut.

Bitcoin recorded $375 million in net inflows for the week, while Ethereum added $51 million. In contrast, Solana experienced $8.7 million in outflows, according to CoinShares data. The net inflows highlight continued institutional interest in digital assets despite shifting macroeconomic conditions, according to CoinShares Head of Research James Butterfill.

However, Butterfill said multi-asset investment products saw more pronounced outflows, totaling $121 million. “Although many altcoins continued to see inflows — such as XRP, $8.8 million, Horizen, $4.8 million, and Polkadot, $1.9 million — these trends suggest investors are adopting a more selective approach within the digital asset market," Butterfill said.

Digital asset fund flows by provider show significant inflows into iShares ETFs. Image: CoinShares.

Despite overall net inflows for digital asset ETPs last week, Butterfill said the significant market volatility towards the end of last week should not go unnoticed. "The net inflows mask the largest single day of outflows on the Dec. 19 totaling $576 million, with total outflows in the final two days of last week at $1 billion," he said.

Total flows by asset show inflows into bitcoin and ether ETFs. Image: CoinShares.

The Federal Reserve’s press conference after its Dec. 18 meeting has influenced market dynamics, according to Butterfill. While the central bank announced a rate cut, Fed Chair Jerome Powell’s post-meeting comments — including a more hawkish economic outlook — sparked risk-off sentiment across markets. Key factors included the Fed’s revised 2025 core PCE inflation projections, up to 2.5% from 2.2%, and indications of only two rate cuts in 2025 instead of the previously anticipated four.

According to Wintermute’s OTC trading desk analysts, the market downturn that began in the middle of last week mirrored declines in equities and bonds as traders adjusted their risk exposure ahead of the low-liquidity holiday season.

Wintermute analysts noted derivatives traders protecting their positions, especially in the form of put options, which are bets that the price of an asset will drop. "General protection demand has pushed skew into put premium out until Jan. 10, and the market seems positioned for some downside volatility in the near-term in the face of shaky traditional risk assets," they said. 

Disclaimer: Evgeny Gaevoy, the founder and CEO of Wintermute, previously sat on The Block’s board of directors from April 2023 to early November 2023 and remains a minority shareholder.

Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.

© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。