Investors withdrew $508 million from digital asset investment products last week, marking a two-week total outflow of $924 million. This shift follows an 18-week streak of inflows totaling $29 billion. Analysts at CoinShares attribute the downturn to heightened market caution post-US Presidential inauguration, with concerns over trade policies, inflation, and monetary tightening dampening sentiment.
Trading activity also slowed significantly, with weekly turnover dropping from $22 billion to $13 billion.
XRP Emerges as Top Altcoin Performer
CoinShares’ latest Digital Asset Fund Flows Report highlights XRP as the standout altcoin, attracting $38.3 million in inflows—the highest among alternative cryptocurrencies. Since mid-November, XRP has garnered $819 million in investments, fueled by optimism surrounding a potential resolution in its ongoing SEC litigation.
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The SEC has noted a surge in spot XRP ETF applications, with firms like Canary Capital, WisdomTree, and Bitwise submitting proposals. This reflects growing institutional demand for regulated XRP investment vehicles.
Other altcoins saw mixed performance:
- Solana: $8.9 million inflows
- Ethereum: $3.7 million inflows
- Sui: $1.47 million inflows
- Multi-asset products: $3.1 million inflows
Regional Flow Trends: US Outflows Offset by European Strength
The US led outflows with $560 million withdrawn, while Hong Kong and Brazil each saw $3 million exits. Canada recorded minor outflows of $2 million.
In contrast, Europe demonstrated resilience:
- Germany: $30.5 million inflows
- Switzerland: $15.8 million inflows
- Sweden/Australia: ~$5 million inflows
FAQs
Q: Why is XRP attracting significant inflows?
A: Investor optimism stems from anticipated favorable outcomes in its SEC case and rising spot ETF applications.
Q: How does Bitcoin’s performance compare?
A: Bitcoin faced $571 million outflows, though short-Bitcoin products saw $2.8 million inflows as some traders hedged.
Q: Which regions are bullish on crypto investments?
A: European markets like Germany and Switzerland are leading with steady inflows, contrasting with US withdrawals.
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