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The post-US election honeymoon is likely over as macroeconomic data is once again a key driver of crypto ETPs, CoinShares’ James Butterfill said.
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Cryptocurrency exchange-traded products (ETP) recorded minor $47 million inflows last week after a significant sell-off in Bitcoin investment products.
Investors poured roughly $1 billion into crypto ETPs in the second trading week of 2025, largely offset by $940 million in weekly outflows, crypto investment firm CoinShares reported on Jan. 13.
The massive outflows were triggered by the release of new macroeconomic data and minutes from the US Federal Reserve, which pointed to a stronger US economy and a more hawkish Fed, CoinShares research lead James Butterfill said.
“This suggests that the post-US election honeymoon is over, and macroeconomic data is once again a key driver of asset prices,” he stated.
Bitcoin ETPs net $213 million in weekly inflows
Bitcoin (BTC) investment products saw inflows totaling $213 million for the week of Jan. 6-Jan. 10, despite seeing the largest outflows relative to other digital assets later in the week.
So far in 2025, Bitcoin remains the best-performing asset with year-to-date inflows of $799 million, the report noted.
Following the sell-off, the total assets under management (AUM) in Bitcoin ETPs dropped 3.5%, from $130 billion the previous week to $125.4 billion.
Ethereum sees biggest outflows, XRP gathers steam
Ether (ETH) investment products recorded the biggest outflows last week, totaling $256 million.
Ethereum outflows should be attributed to a broader tech sell-off rather than any specific issue with the asset, Butterfill noted.
On the other hand, XRP (XRP), the third largest cryptocurrency by market capitalization, saw substantial crypto ETP inflows of $41 million last week.
Crypto ETP flows by assets in the week of Jan. 6–10 (in millions of dollars). Source: CoinShares
The surge remains primarily driven by political and legal factors, with inflows suggesting heightened optimism ahead of the appeal deadline by the US Securities and Exchange Commission on Jan. 15.
Altcoins like Aave, Stellar and Polkadot also attracted notable investments despite poor price performance, recording inflows of $2.9 million, $2.7 million and $1.6 million, respectively.
Switzerland leads outflows at $85 million
While the US continued to be the biggest contributor to crypto ETPs last week with $79 million in inflows, Switzerland led the outflows at $85 million.
Other major inflows also came from Germany and Canada, totaling inflows of $52 million and $37 million, respectively.
Crypto ETP flows by countries in the week of Jan. 6-Jan. 10 (in millions of dollars). Source: CoinShares
Apart from Switzerland, major outflows were also seen in Hong Kong and Sweden, which recorded roughly $37 million and $33 million outflows, respectively.
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This article first appeared at Cointelegraph.com News
