Cryptocurrency Investment Inflows Slow Dramatically After Record December Surge

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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:

  1. Profit-taking emerged as cryptocurrency prices retreated from all-time highs, with some products experiencing outflows.
  2. 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.
  3. 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

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.


👉 Discover the latest trends in crypto investments

Data sourced from CoinShares and OANDA analysis. Updates follow institutional activity.


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