Crypto exchange-traded products (ETPs) recorded $47 million in inflows last week, according to a report from CoinShares.
CoinShares research lead James Butterfill noted that the recent inflows are indicative of a shift in market sentiment, driven by newly released macroeconomic data and minutes from the U.S. Federal Reserve.
The Fed's outlook suggests a stronger U.S. economy and a more hawkish stance, prompting investors to reassess their strategies.
Bitcoin ETPs alone saw a net inflow of $213 million during the week of Jan. 6-10, remaining the top-performing asset this year with total inflows of $799 million.
However, the total assets under management (AUM) in Bitcoin ETPs fell by 3.5%, from $130 billion to $125.4 billion, after the sell-off.
Conversely, Ethereum investment products faced the largest outflows, totaling $256 million. Butterfill attributed these outflows to a broader technology sell-off rather than specific issues with Ethereum itself. In contrast, XRP recorded inflows of $41 million, fueled by optimism surrounding the upcoming appeal deadline set by the U.S. Securities and Exchange Commission on Jan. 15.
Geographically, the U.S. led inflows, with $79 million, while Switzerland experienced the largest outflows, at $85 million.
Germany and Canada also contributed with inflows of $52 million and $37 million, respectively. Other notable outflows were recorded in Hong Kong and Sweden, with approximately $37 million and $33 million respectively exiting the market.