Key Highlights
- Crypto funds rebound with $1.07 billion inflows after four weeks of withdrawals, driven by Fed rate-cut hopes.
- The U.S. led inflows with $994million while Germany saw $55.5 million in outflows, showing mixed regional sentiment.
- XRP set a new weekly record with $289 million in inflows, while Bitcoin attracted $464 million and Ethereum secured $309 million.
After a month of sustained withdrawals amounting to $5.7 billion, digital asset investment products rebounded strongly last week, with inflows totaling $1.07 billion, according to CoinShares data.
The recovery seems fueled by renewed investor confidence, with expectations that the U.S. Federal Reserve may loosen monetary policy soon.
In the report, James Butterfill, Head of Research at CoinShares, noted that investor sentiment improved following remarks from FOMC member John Williams, who stated that monetary policy remains restrictive. “These comments have raised expectations of a potential interest rate cut this month, encouraging investors to return to digital asset investment products,” Butterfill said.
Crypto action by region
Regionally, U.S. inflows topped the list at $994 million. Canada and Switzerland came next with $97.6 million and $23.6 million, respectively. In contrast, Germany experienced outflows of $55.5 million, indicating a cautious approach amid selective profit-taking in parts of Europe.
Among cryptocurrencies, Bitcoin topped inflows with $464 million, keeping its lead among institutional investors. Ethereum saw $309 million, helped by interest in network upgrades and staking. XRP brought in $289 million, setting a new weekly record as institutions took notice, partly due to recent U.S. ETF developments.
On the losing end, Cardano had $19.3 million in outflows, making up about 23% of its assets under management. Short-Bitcoin products saw $1.9 million in outflows, showing a decrease in bearish bets.
Fund flows and market activity
At the provider level, iShares ETFs contributed $120 million in inflows, Fidelity’s Bitcoin fund added $230 million, and Grayscale recorded $56 million. Smaller providers, grouped as “Other,” contributed $504 million, while Bitwise and ARK 21 Shares experienced modest outflows. Total assets under management across these funds stood at $183.3 billion.
Compared to the previous week, weekly trading volumes for digital asset ETPs were approximately $24 billion, down from $56 billion, possibly due to the Thanksgiving holiday. On-chain data also showed significant XRP outflows from centralized exchanges, indicating a move to longer-term holding and reduced supply for immediate trading.
Signs of recovery
This rebound underlines the interaction of improving macroeconomic expectations, prospects for monetary easing, and selective institutional interest.
After several weeks of outflows and market weakness, digital asset investment products are beginning to show signs of recovery. Bitcoin, Ethereum, and XRP are driving the inflows. At the same time, smaller altcoins continue to face investment pressure. This indicates a careful but renewed interest from institutional investors.
Also Read: Bitcoin Crashes Below $87K, Wiping Out a Week of Gains in 3 Hours
