Cryptocurrency investment products broke a four-week losing streak last week, attracting roughly $1 billion in fresh capital after suffering $5.5 billion in outflows over the previous month.
Crypto exchange-traded products (ETPs) saw $1.07 billion in inflows—their first weekly gain since late October—according to data from European digital asset manager CoinShares.
James Butterfill, CoinShares’ head of research, said the rebound was driven by renewed optimism over a potential U.S. interest rate cut following comments from Federal Open Market Committee (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 said.
XRP posts record inflows
Bitcoin, Ether, and XRP led last week’s ETP inflows, with Bitcoin drawing $464 million. Ether followed with $309 million, while XRP saw $289 million—its largest weekly inflow on record.
Despite the positive week, both Bitcoin and Ether remain in the red for the month, with respective outflows of $2.8 billion and $1.4 billion..
XRP-focused funds have bucked the broader trend, accumulating nearly $790 million in inflows so far this month—including the largest weekly inflow on record for the asset, according to CoinShares.
Butterfill attributed the surge in demand to recent U.S. exchange-traded fund (ETF) launches, such as Canary Capital’s XRP ETF, which rolled out in mid-November.
Regionally, the United States dominated activity, contributing almost $1 billion in inflows despite typically muted trading during the Thanksgiving holiday week, Butterfill noted.
Among issuers, Fidelity led the week with $230 million in inflows, followed by Volatility Shares Trust with $160 million and BlackRock’s iShares at $120 million. The resurgence in crypto ETP demand accompanied a broader market uptick, with Bitcoin briefly climbing above $90,000 last week.
The momentum faded quickly, however, as Bitcoin fell back below $86,000 on Monday, according to CoinGecko.
