A recent market correction in December significantly affected digital asset investment products, causing total assets under management for exchange-traded products (ETPs) to fall by $17.7 billion. CoinShares' analysis revealed that digital assets funds experienced over $1 billion in outflows between Dec. 19 and 20, likely due to a slow monetary easing approach anticipated for the upcoming year. The U.S. Federal Reserve reduced the federal funds rate to its lowest since February 2023, yet projections indicated only two further cuts in 2025, down from four. Despite a tumultuous market, digital assets funds recorded positive net flows of $308 million for the week. Notable outflows included $212 million from foreign markets, chiefly Germany, Sweden, and Switzerland. In contrast, the U.S. saw inflows of $567 million, with Bitcoin leading inflows at $375 million. Bitcoin's price dropped from around $106,000 to $93,370, a 10.5% decrease, but it still presents a year-to-date gain of 115%.

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