Capital inflows into crypto funds and investment products plummeted during the first week of January after posting new alltime highs in lateDecember. According to crypto fund manager CoinShares Jan. 11 Digital Asset Fund Flows report, the first week of trading in the new year saw just 29 million flow into institutional crypto products. Thats a greater than 97 decline from the 1.09 billion invested during the week before Christmas. Volumes are likely to have been dampened by traders taking holidays over the new year.
However the firm also notes that Decembers surging inflows have been followed by recent evidence of potential profit taking, with multiple crypto investment products recording weekly outflows in early January.
As of Jan. 8, CoinShares estimated that 34.4 billion in capital was held in crypto investment products of which 27.5 billion, or 80, was in locked BTC funds, while 4.7 billion, or roughly 13.5, was invested in ETH products.
The report notes that Bitcoin funds have also produced stronger volumes recentl than during the December 2017 bull run, stating We have seen much greater investor participation this time round with net new assets at US8.2bn compared to only US534m in December 2017.