CoinShares says ‘post-US election honeymoon is over’ as macro and monetary policy weigh heavy on crypto fund flows
2025-01-13
Category: None

Global crypto funds run by asset managers such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares and 21Shares registered modest net inflows of $48 million last week as macro and monetary policy reasserted themselves, according to CoinShares.
While the week got off to a good start, with global crypto investment products attracting nearly $1 billion, the release of new macroeconomic data and the Federal Open Market Committee’s latest meeting minutes suggested a stronger U.S. economy and a more hawkish Fed, leading to outflows of $940 million in the latter half, CoinShares Head of Research James Butterfill noted in a Monday report.
“This suggests that the post-US election honeymoon is over, and macroeconomic data is once again a key driver of asset prices,” Butterfill said.
Weekly crypto asset flows. Images: CoinShares.
Bitcoin and ether’s mixed fortunes
Bitcoin-based investment products led last week’s net inflows globally, adding $214 million despite witnessing the largest net outflows later in the week. They remain the best-performing crypto funds this year so far, clocking $799 million worth of net inflows.
The U.S. spot Bitcoin exchange-traded funds represented $312.8 of the overall net inflows, according to data compiled by The Block, though U.S. markets were also closed on Thursday in observance of a national day of mourning for former President Jimmy Carter.
Ethereum-based funds suffered the most, experiencing net outflows of $256 million for the week. “We believe [this] is attributed to the broader tech sell-off rather than any specific issue with the asset,” Butterfill said, reflecting on the Nasdaq 100’s 3.5% decline over the period. 
U.S. spot Ethereum ETFs accounted for $186 million of those net outflows last week, according to The Block's data dashboard.
However, XRP-based products managed to generate $41 million in net inflows last week amid heightened optimism ahead of the Jan. 15 Securities and Exchange Commission appeal deadline in the Ripple case, Butterfill said. Solana-based funds also saw net inflows of $15 million.
Despite poor price performance during the week, other altcoin-based products, including Aave, Stellar and Polkadot, also witnessed net inflows, Butterfill noted.
Bitcoin fell 7.8% over the past week and is currently trading for $90,897, according to The Block’s Bitcoin Price Page. Ether has dropped 14.8% and is now changing hands for $3,063. 
Meanwhile, the GMCI 30 index, which represents a selection of the top 30 cryptocurrencies, is down 12.5% over the past week to 176.64.
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