cryptojournalist
$17 Billion Drop in Crypto ETPs
A December market correction caused a sharp decline in exchange-traded products (ETPs) for digital assets, with total assets under management dropping by $17.7 billion, according to a Dec. 23 report from CoinShares.
Between Dec. 19 and 20, over $1 billion flowed out of digital asset funds, largely due to concerns over the Federal Reserve’s slower pace of monetary easing in 2025. On Dec. 18, the Federal Open Market Committee (FOMC) cut the federal funds rate by 25 basis points to 4.25%-4.50%, the lowest since February 2023. However, projections revealed only two more rate cuts expected in 2025, down from the previously forecasted four.
Positive Net Flows Despite Challenges
Despite the downturn, digital asset funds ended the week with $308 million in net inflows. CoinShares emphasized that the outflows, though significant, represented just 0.37% of the total value of crypto funds.
ETP Flows by Region and Asset
The majority of outflows came from foreign markets:
Germany, Sweden, and Switzerland together saw $212 million in outflows.
Canada experienced $60 million in outflows.
On the other hand, the US led with $567 million in inflows, followed by Brazil ($16 million) and Australia ($10 million).
Bitcoin Leads Inflows, Despite Price Drop
Bitcoin (BTC) attracted $375 million in inflows, making it the top-performing asset for the week. Ether (ETH) followed with $51 million in inflows. However, multiasset products saw $121.4 million in outflows, and Solana (SOL) funds lost $8.7 million.
Bitcoin’s price dropped 10.5% during the week, falling from $106,000 on Dec. 16 to $93,370 on Dec. 20. Despite this, the cryptocurrency remains up 115% year-to-date.
