During the first week of January, money inflows into digital currency funds and investment products plunged despite posting fresh record peak in late-December. 

The initial week of trade in the new year witnessed only $29 million flow into retail crypto items, as per the Jan. 11 Digital Asset Fund Flows report by digital currency fund manager CoinShares. That’s a drop of more than 97 percent from the $1.09 billion spent over the week prior to Christmas. Amounts are probable to have been lessened during the new year by investors taking vacations.

The company also states, nevertheless, that latest “proof of possible profit taking” has accompanied the growing inflows in December, with some digital currency investment products showing weekly outflows in the start of January. 

Interest in State-Backed Digital Currencies Rising | deBanked

CoinShares reported that $34.4 billion in capital was kept in cryptocurrency investment products in Jan. 8, of which $27.5 billion, or 80%, was in locked BTC assets, whilst $4.7 billion, or approximately 13.5%, was deposited in ETH products. 

The study states that Bitcoin investments have also generated greater volumes recently than during the bull trend in December 2017, asserting: “We have seen much greater investor participation this time round with net new assets at US$8.2bn compared to only US$534m in December 2017.”

Capital flows into digital asset investment products: CoinShares

The report claims that digital currency is witnessing rising use as a store of wealth with sector-wide inflows steadily staying positive since May 2019. Jean-Marie Mognetti, CEO of CoinShares, previously said:

“The narrative shift around Bitcoin over the last six months has been profound. Investors used to consider it a risk to allocate to Bitcoin. Now it’s a risk not to allocate to Bitcoin.”

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