Crypto ETPs End Four-Week Decline with $1B Inflows as XRP Achieves Record Gains

The cryptocurrency investment sector has experienced a notable recovery, seeing approximately $1 billion in new inflows after a month of losses. This rebound was significantly driven by XRP, which posted remarkable inflows, while Bitcoin and Ether have shown mixed performance.

Key Takeaways

Cryptocurrency investment products saw $1.07 billion in inflows last week, marking a reversal from a previous four-week decline.
XRP garnered substantial interest, achieving record inflows of nearly $790 million month-to-date, largely attributed to recent ETF launches.
Major inflows came predominantly from the US market, despite a quieter trading environment during the Thanksgiving week.
Bitcoin and Ether saw considerable inflows last week, but they remain down for the month.

Crypto ETPs End Four-Week Decline with $1B Inflows as XRP Achieves Record Gains

Main Content

Cryptocurrency investment products have halted a four-week losing streak, attracting about $1 billion in fresh capital following losses totaling $5.5 billion over the prior month. Last week, crypto exchange-traded products (ETPs) reported inflows of $1.07 billion, marking their first gain since late October, as noted by the European crypto asset manager CoinShares.

James Butterfill, CoinShares’ head of research, highlighted that this uptick in investment sentiment is attributed to optimism surrounding a possible US interest rate cut. This shift in sentiment follows comments from Federal Open Market Committee (FOMC) member John Williams, who indicated that monetary policy remains restrictive, thus raising hopes for an interest rate cut this month.

XRP Records Unprecedented Inflows

Bitcoin, Ether, and XRP were the leading performers in terms of ETP inflows last week, with Bitcoin leading the charge at $464 million. Ether and XRP had inflows of $309 million and $289 million, respectively.

Despite these positive weekly figures, both Bitcoin and Ether remain in the red for the month, experiencing outflows of $2.8 billion and $1.4 billion, respectively. In contrast, XRP funds are flourishing, recording nearly $790 million in inflows so far this month, including the largest weekly inflows on record for XRP, according to CoinShares.

Butterfill attributed XRP’s surge to the recent launches of US exchange-traded funds (ETFs), such as Canary Capital’s XRP ETF, which was introduced in mid-November.

Regionally, the United States was the primary driver of these inflows, contributing almost $1 billion, despite a period of quieter trading during the Thanksgiving week.

XRP, Stocks, CoinShares, Ethereum ETF, Bitcoin ETF, ETF

Among the fund issuers, Fidelity recorded the highest inflows at $230 million, followed by Volatility Shares Trust at $160 million, and BlackRock’s iShares at $120 million.

The resurgence in crypto ETPs coincided with short-term gains across larger crypto markets last week, with Bitcoin briefly surpassing $90,000. However, this rally was short-lived, as Bitcoin subsequently dipped below $86,000 on Monday, according to CoinGecko data.

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