Last week marked a significant turnaround for crypto exchange-traded products (ETPs), which saw inflows exceeding $1 billion for the first time in weeks. This positive shift was primarily driven by Bitcoin, Ethereum, and XRP, as investors regained confidence following a difficult month characterized by heavy outflows.
According to data from CoinShares, digital asset ETPs registered an impressive $1.07 billion in inflows last week. This comes on the heels of four consecutive weeks of net outflows, amounting to $5.7 billion. Bitcoin-focused ETPs alone attracted approximately $464 million, while Ethereum saw inflows of about $309 million. Notably, XRP recorded its largest weekly inflow ever at $289 million, marking a six-week inflow streak that constitutes 29% of its assets under management. This surge is reportedly linked to recent launches of U.S. ETFs focused on XRP.
In contrast, the Cardano ETP witnessed outflows of $19.3 million, which represented a significant 23% of its total assets in crypto funds. Geographically, the United States emerged as the leader in inflows, contributing $994 million, while Canada and Switzerland added $97.6 million and $23.6 million, respectively. Germany was an outlier, experiencing notable outflows of $57.3 million during the same period.
Trading volumes were subdued at $24 billion, largely due to the Thanksgiving holiday, a sharp decline from the previous week’s high of $56 billion. Nonetheless, the price of Bitcoin had stabilized above $90,000 late last week, buoyed by optimistic market sentiment. This positivity was partly fueled by comments from Federal Open Market Committee (FOMC) member John Williams, which raised expectations for a potential interest rate cut in the upcoming December meeting.
However, this renewed optimism did not carry into the new week, as the crypto market faced fresh declines. By late Sunday, Bitcoin’s price had plummeted to around $84,917, reflecting a 7% drop over the previous day. Ethereum, XRP, Solana, and Dogecoin also reported deeper daily losses, indicating ongoing volatility and uncertainty in the crypto markets.
Despite a solid finish to the previous month, the prevailing sentiment suggests that the challenges for major cryptocurrencies are far from over. Investors will be keenly watching the market’s performance in the coming days as they assess the sustainability of last week’s inflow momentum.
