According to the latest data from asset management firm CoinShares, cryptocurrency funds and investment products saw only $29 million** in inflows during the first week of January—a sharp decline from the **$1.09 billion recorded the week before Christmas.
Key Observations:
- Profit-taking emerged as cryptocurrency prices retreated from all-time highs, with some products experiencing outflows.
- Despite the slowdown, total assets under management (AUM) reached a record **$34.4 billion** as of January 8—up from just $2 billion in late 2019.
- Bitcoin plummeted 19% on Monday, cooling its rally after hitting a record $42,000 the previous week.
Market Reactions
Edward Moya, Senior Market Analyst at OANDA (New York), noted:
"Market crashes and extreme volatility are powerful deterrents for newcomers. But seasoned investors anticipated this—we even saw a near-20% drop earlier last week."
Fund Inflows Breakdown
- Bitcoin products: $24.3 million (Week 1, 2025)
- Ethereum products: $5.3 million
- 2024 totals: $15.6 billion (Bitcoin), ~$2.5 billion (Ethereum)
Moya added:
"Bitcoin remains up year-to-date. A 22% dip won’t scare away the new institutional money that just jumped in."
Top Cryptocurrency Funds
| Fund | Assets Under Management (AUM) |
|--------------------|-------------------------------|
| Grayscale (No. 1) | $28.2 billion |
| CoinShares (No. 2) | $3.4 billion |
FAQ
Q: Why did cryptocurrency inflows drop so sharply?
A: Profit-taking after record highs and typical post-holiday market adjustments.
Q: Is Bitcoin still a good investment despite the volatility?
A: Institutional interest remains strong, with long-term holders unfazed by short-term dips.
Q: How does Ethereum compare to Bitcoin in 2025 inflows?
A: Ethereum trails but maintains steady demand, with $5.3 million in Week 1 inflows.
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Data sourced from CoinShares and OANDA analysis. Updates follow institutional activity.
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