Net inflows into cryptocurrency-based investment products last week amounted to $29 million, well below the record $1.09 billion in the first week of January. The data comes from digital asset manager CoinShares.
Analysts say profit-taking may have occurred at the recent price highs. This is evidenced by outflows from exchange-traded products (ETPs), mutual funds and over-the-counter crypto trusts.
According to CoinShares as of January 8, assets under management by crypto product providers remain at a record $34.4 billion.
Rising crypto asset prices at the start of the month helped spur interest in investment products, the company said. Derivatives trading volumes accounted for 10.5% of turnover in the Bitcoin market.
Weekly fund flows have remained positive since May 2019. Analysts say this reflects growing use of cryptocurrencies as a store of value.
CoinShares Research by Sergey Lissovenko
In December CoinShares estimated outflows from gold funds of $9.2 billion, 15% of which went to buying bitcoin.
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