Crypto funds saw significant net outflows of $446 million last week, illustrating the ongoing sell-off across the industry. Since October 10, total redemptions have reached a staggering $3.2 billion, highlighting the ongoing volatility affecting investor sentiment.
Despite year-to-date flows hovering around $46.3 billion, the total assets under management (AUM) have only experienced a modest increase of 10% this year, with crypto funds currently managing $174.2 billion.
The United States bore the brunt of these outflows, with $460 million in redemptions, outmatching the global total primarily due to inflows observed in other regions.
XRP and Solana Show Positive Inflows
XRP funds enjoyed a significant boost with $70.2 million in weekly inflows, continuing a positive trend that has persisted since mid-October following the launch of new ETFs. This surge propelled month-to-date totals to an impressive $424.8 million.
Year-to-date inflows into XRP products have now reached $3.3 billion, reflecting strong demand as total AUM stands at $2.9 billion.
Solana funds similarly attracted $7.5 million during the same period, marking a consistent pattern of weekly gains that brought its month-to-date inflows to $124.8 million. Since the rollout of ETFs in October, Solana has recorded cumulative inflows totaling $1.34 billion, with its crypto products boasting $3.1 billion in AUM.
Regional Trends: U.S. Outflows vs. German Inflows
While U.S. crypto funds faced $460 million in outflows, Germany defied the trend, attracting $35.7 million in weekly inflows. To date in December, inflows from German investors have amassed to $248 million.
Other regions saw either stalled growth or minimal outflows; Switzerland recorded $14.2 million in redemptions, while Australia incurred a minor loss of $0.04 million. Canada noted $2.9 million outflows, Brazil witnessed a $1 million drop, and Sweden experienced $3.7 million in outflows. Interestingly, Hong Kong reported a slight gain with $0.9 million in new deposits.
Bitcoin and Ethereum Struggle with Redemptions
Bitcoin products succumbed to the heaviest outflows of the week, experiencing $443 million in redemptions, with month-to-date losses reaching $25 million. Since mid-October, Bitcoin funds have faced total losses of $2.8 billion, though they remain ahead for the year with $26.8 billion in inflows.
Ethereum funds suffered $59.3 million in weekly redemptions, bringing month-to-date losses to $241 million. Overall, Ethereum products have lost $1.6 billion since October, with year-to-date inflows standing at $12.7 billion.
Mixed Outcomes Across Fund Providers
Grayscale Investments led losses among providers, shedding $115 million last week and a total of $3.2 billion year-to-date. Grayscale’s AUM remains substantial at $24.8 billion, making it the second-largest provider.
Fidelity Wise Origin endured $111 million in weekly losses but has still accumulated $69 million in monthly inflows, resulting in a total of $385 million year-to-date and an AUM of $17.6 billion. Conversely, Bitwise Funds experienced $66 million in outflows, totaling $140 million this month.
ProShares ETFs emerged as a notable exception, attracting $26 million in inflows last week, which brings their month-to-date totals to $278 million and year-to-date inflows to an impressive $2.2 billion.
Additionally, Volatility Shares Trust gained $25 million during the week, while 21Shares AG reported only $2 million in outflows.
Overall Crypto Funds Market Activity
In broader market dynamics, multi-asset crypto funds recorded $27.2 million in outflows last week, culminating in monthly losses of $193.3 million and year-to-date redemptions of $190 million. While products associated with Chainlink, Short Bitcoin, and Litecoin exhibited mixed responses, their overall impact on the total flows remained limited as most crypto funds experienced stable performance despite low volume activity.
