Crypto funds saw a modest net inflow of $48 million last week as a result of macroeconomic and monetary policies. According to data from CoinShares, nearly $1 billion entered funds at the beginning of the week. However, due to strong economic data from the U.S. and the Federal Reserve’s more hawkish tone, $940 million flowed out by the end of the week. CoinShares Research Director James Butterfill commented, “The honeymoon after the U.S. elections is over, and macroeconomic data is once again dictating prices.”
Bitcoin led the inflows with a total of $214 million, making it the top contributor to crypto fund inflows. Despite significant outflows by the end of the week, Bitcoin remains the best-performing cryptocurrency fund, with a total net inflow of $799 million since the beginning of the year.
In the U.S., spot Bitcoin ETFs accounted for $312.8 million of these inflows. On the other hand, Ethereum-focused funds experienced net outflows of $256 million, marking the worst performance. Butterfill noted that this trend was due to widespread sales in technology stocks, with the Nasdaq 100 index dropping 3.5% during the same period.
Optimism prevailed in XRP and Solana funds, with XRP attracting $41 million and Solana-based funds garnering $15 million in inflows. Additionally, net inflows were reported for altcoin-focused investment products such as Aave, Stellar, and Polkadot.
At the time of reporting, Bitcoin had decreased by 7.8% over the past week, trading at $90,897, while Ethereum fell 14.8% to $3,063. The cryptocurrency market continues to exhibit volatility under the pressure of macroeconomic developments.
