#What Happened to Digital Asset Investment Products Last Week?
Last week, digital asset investment products faced massive outflows of $952 million, primarily driven by concerns over market instability and selling pressure from large holders, commonly referred to as whales. This shift in investor sentiment was significantly influenced by delays in the proposed market structure bill.
The withdrawal marked the end of a four-week streak of inflows that had initially buoyed market confidence. The majority of the outflows stemmed from Ethereum and Bitcoin, with approximately $555 million exiting Ethereum-focused funds. Meanwhile, Bitcoin products experienced a $460 million decline in investment.
Where Did the Inflows Occur?
In an interesting divergence from the wider trends, XRP and Solana bucked the outflow trend by attracting noteworthy inflows. XRP investment vehicles saw an addition of around $63 million, while Solana funds recorded nearly $49 million in new capital.
How Do Current Trends Compare With Last Year?
Despite the recent setbacks, it is worth noting that Ethereum has managed to outshine its performance from the previous year on a year-to-date basis. To date, investments related to Ethereum have drawn $12.7 billion, a significant rise compared to $5.3 billion over the same timeframe last year. Conversely, Bitcoin has not matched its previous year's momentum, garnering $27.2 billion thus far in 2024 compared to an impressive $41.6 billion last year.
As of December 20, digital asset investment products reported total assets under management of approximately $46.7 billion, a slight decline from the $48.7 billion recorded earlier in 2024.
This recent performance highlights the volatility currently pervading the cryptocurrency market, making it essential for investors to stay informed and adjust their strategies accordingly.