US labour data all but erased inflows into crypto funds

From 4 to 10 January, digital-asset investment funds took in $44.2m. Macro data from the United States set a muted tone for the new year, according to CoinShares. 

By the firm’s calculations, until the publication of the “hawkish” minutes from the latest the Fed meeting (8 January), inflows totalled roughly $1bn. 

The US December employment report (10 January) further undermined sentiment, prompting a reassessment of the likely path of the policy rate. As a result, clients withdrew $940m over the remaining days of the week.

“The honeymoon after celebrating the outcome of the US elections is over. Macro data are once again the key driver,” — the experts emphasised.

Bitcoin-based instruments attracted $214m; since the start of the year — $797m.

Clients allocated $1.8m to vehicles that allow shorting the digital gold.

Investors pulled a hefty $255.6m from Ethereum funds. CoinShares attributed the negative dynamic to the asset’s high sensitivity to sell-offs in US technology stocks.

Products based on Solana, by contrast, did not show such a price correlation — inflows came to $15m.

Inflows into XRP-based funds reached a notable $41.2m. Experts linked this to market optimism ahead of the SEC deadline for filing an appeal against the court ruling on the token’s status.

Despite the worsening backdrop, instruments based on Aave, Stellar and Polkadot drew $2.9m, $2.7m and $1.6m, respectively.

Earlier, QCP Capital said the current week could spur interest in cryptocurrencies as a hedge against inflation.

In 2024, inflows into crypto funds reached a record $44bn.