Crypto funds recorded a modest net inflow of $48 million last week due to the impact 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 Fed’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 Leads the Charge While Ethereum Struggles
Bitcoin $91,599 investment products led inflows with a total of $214 million, making them the top contributors to crypto fund inflows. Despite significant outflows by the end of the week, they remain 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. In contrast, Ethereum $2,991-focused funds experienced net outflows of $256 million, marking the worst performance. Butterfill noted that this trend stemmed from widespread sales in technology stocks, with the Nasdaq 100 index dropping 3.5% during the same period.
Optimism Prevails in XRP and Solana Funds
Leading altcoins like XRP saw their funds attract $41 million due to positive expectations ahead of the upcoming SEC appeal in the Ripple $2 case. Similarly, Solana $175-based funds garnered $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.