Cryptocurrency investment products have ended a four-week drop, attracting approximately $1 billion in new inflows following four weeks that saw a total of $5.5 billion in losses.
Crypto exchange-traded products (ETPs) reported $1.07 billion in inflows last week, marking their first gain since late October. According to the European crypto asset manager CoinShares, this upturn is attributed to positive sentiment concerning a potential US interest rate cut, spurred by statements from FOMC member John Williams.
“The turnaround in sentiment follows FOMC member John Williams comments stating monetary policy remains restrictive, raising hopes for an interest rate cut this month,” Butterfill remarked.
XRP Sees Record Inflows
Bitcoin (BTC), Ether (ETH), and XRP (XRP) emerged as the strongest performers among ETP inflows last week, with Bitcoin netting $464 million. Following Bitcoin were Ether and XRP, with $309 million and $289 million respectively.
Despite the weekly gains, Bitcoin and Ether still faced monthly outflows of $2.8 billion and $1.4 billion, respectively.
Weekly crypto ETP flows by asset as of Friday (in millions of US dollars). Source: CoinShares
On the contrary, XRP funds have enjoyed nearly $790 million in inflows so far this month, which includes the largest weekly inflows on record, as reported by CoinShares.
Butterfill attributed the surge in XRP’s inflows to recent US exchange-traded fund (ETF) launches, notable among them is Canary Capital’s XRP ETF that launched in mid-November.
Geographically, the majority of these inflows originated from the United States, totaling almost $1 billion, even amidst quieter trading during the Thanksgiving week, according to Butterfill.
Weekly crypto ETP flows by issuer as of Friday (in millions of US dollars). Source: CoinShares
Among investment managers, Fidelity registered the most significant inflows at $230 million, followed by Volatility Shares Trust with $160 million and BlackRock’s iShares at $120 million.
The growth in crypto ETPs coincided with short-term advancements across various crypto markets last week, with Bitcoin momentarily exceeding $90,000. However, this rally was brief as BTC fell back below $86,000 on Monday, according to CoinGecko data.
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