TLDR
- Global crypto investment products saw net inflows of $1.07 billion last week, marking a shift in sentiment.
- Bitcoin-based ETPs led the inflows, attracting $461 million as investors reversed previous bets on price declines.
- Ethereum-based ETPs saw $308 million in inflows, with U.S.-based spot Ethereum ETFs contributing $312.6 million.
- XRP-based funds experienced a record $289 million in weekly inflows, fueled by recent U.S. spot ETF launches.
- Crypto ETP trading volumes fell to $24 billion, down from $56 billion the previous week, due to the Thanksgiving holiday.
Global crypto investment products saw net inflows of $1.07 billion last week, according to CoinShares data. This shift in sentiment followed four weeks of outflows totaling $5.7 billion. The rebound came amidst growing expectations of a U.S. rate cut, sparked by comments from FOMC member John Williams.
Bitcoin-Based ETPs Drive Inflows
Bitcoin-based ETPs led the way, attracting $461 million in inflows last week. Investors shifted their positions, reversing earlier bets on price declines.
“The reversal in flows into Bitcoin ETPs shows renewed confidence in the asset,” said James Butterfill, Head of Research at CoinShares.
Despite the positive week, Bitcoin’s price dropped more than 5% early Monday. This downturn came amid reports that the Bank of Japan may hike rates in December. The broader crypto market also faced losses, making the rebound feel temporary.
Ethereum and XRP ETPs Post Gains
Ethereum-based ETPs saw net inflows of $308 million last week, with U.S.-based spot Ethereum ETFs contributing $312.6 million. These inflows were partially offset by outflows in other regions. The demand for Ethereum products suggests continued interest in the asset despite broader market volatility.
XRP-based funds also saw strong inflows, reaching $289 million for the week. This surge comes after the launch of U.S. spot ETFs for XRP, leading to a six-week streak of inflows. XRP-based funds now represent 29% of total assets under management.
Crypto ETPs Volumes Decline
Crypto ETP trading volumes decreased sharply last week to around $24 billion. This marks a sharp contrast to the previous week’s record of $56 billion. The decline in volumes is attributed to the U.S. Thanksgiving holiday, according to Butterfill.
Despite these fluctuations, Bitcoin and Ethereum products maintained strong interest from investors. The market appears to remain cautiously optimistic about crypto assets, though broader conditions remain volatile. The most recent data shows a continued flow into crypto ETPs despite challenges in the market.
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