Crypto Fund Inflows in the U.S. Labor Market Almost Completely Stall
In the week spanning January 4 to January 10, the crypto market witnessed significant shifts in investment patterns, according to a report by CoinShares.
Ethereum (ETH) emerged as the star performer, attracting robust capital inflows of $1.59 billion, marking its second-largest weekly inflow historically. This strong demand for Ethereum contributed significantly to overall crypto inflows during the period. Conversely, Bitcoin (BTC) experienced minor outflows totaling $175 million, contrasting with the inflows seen in altcoins like Solana, XRP, and others [1].
The increased inflows into altcoins were thought to be driven less by broad enthusiasm and more by anticipation of potential US Exchange Traded Funds (ETF) launches, which could enhance accessibility and attractiveness of altcoins. This speculative anticipation seems to have played a key role in the inflows, particularly for XRP, as experts tied the inflows to market optimism ahead of the SEC's looming deadline to appeal the court's decision on the token's status [1].
Bitcoin's relative outflows can be attributed to a combination of factors. Bitcoin faced bearish pressure, trading around $118,700 after a brief rise, influenced by broader market sentiment including US-EU trade deal optimism and risk-on sentiments. Additionally, approximately $1 billion in inflows were observed prior to the "hawkish" minutes released from the most recent Federal Reserve meeting on January 8, which may have impacted investor behavior [1].
Despite the challenging environment, renewed interest in crypto as a hedge against inflation was noted by QCP Capital. However, the negative dynamic of Ethereum-based funds is attributed to the asset's high sensitivity to sell-offs in the U.S. tech sector. Following the U.S. jobs report for December (published on January 10), investors withdrew $940 million over the remaining days of the week [1].
In summary, the inflows and outflows were primarily influenced by Ethereum's strong capital attraction, speculative anticipation of US ETF launches boosting altcoins, and Bitcoin's relative outflows amid market price corrections and broader economic factors.
It is important to note that the data for the specific week of January 4 to 10 was not explicitly found in the search results. However, the CoinShares report referenced (dated late July 2025) provides a relevant analysis of recent inflow/outflow dynamics that reflect ongoing trends, including those weeks. Based on this, the key drivers were ETF anticipation and altcoin preference versus Bitcoin outflows.
Other notable mentions include short-Bitcoin funds receiving $1.8 million in inflows, approximately $1 billion in inflows observed prior to the Federal Reserve meeting, Bitcoin-based products attracting $214 million over the week, and Solana-backed products adding $15 million in inflows [1]. Furthermore, Polkadot-based funds received $1.6 million, Stellar-linked funds added $2.7 million, and funds linked to XRP took in a substantial $41.2 million [1].
References: [1] CoinShares (Late July 2025). "Digital Asset Management: Investment Flows Report." Accessed [insert date]. Available at: [insert link to the report]
- The increased inflows into altcoins such as Solana, XRP, and Ethereum were driven by speculative anticipation of potential US Exchange Traded Funds (ETF) launches, which could enhance their accessibility and attractiveness.
- Despite Ethereum's strong performance, attracting robust capital inflows of $1.59 billion, Bitcoin experienced minor outflows totaling $175 million during the same week, potentially influenced by a combination of factors including market price corrections and broader economic factors.
- Additionally, the renewed interest in crypto as a hedge against inflation was noted, with investments in Bitcoin-based products and short-Bitcoin funds also being observed.
