Crypto Investors Return As ETP End Bearish Streak
After a month of massive disengagement, crypto investment products record a spectacular comeback. In a single week, crypto ETPs attract 1.07 billion dollars, breaking a series of four consecutive weeks of outflows totaling 5.5 billion $. This renewed interest marks an unexpected turning point in a highly uncertain monetary context, where markets scrutinize the Fed signals.
In brief
- After four weeks of massive outflows totaling 5.5 billion $, crypto ETPs register a rebound of 1.07 billion $ in one week.
- This trend reversal is linked to renewed optimism, particularly regarding the prospect of an interest rate cut in the United States.
- Bitcoin remains the leader in weekly inflows (464 M$), followed by Ether (309 M$), but XRP surprises with an all-time record of 289 M$.
- The United States alone concentrates nearly 1 billion $ of incoming flows, despite reduced activity during the Thanksgiving week.
The return of capital : a massive surge in crypto ETP
After a month marked by massive withdrawals , totaling 5.5 billion dollars of cumulative outflows in four weeks, crypto ETPs registered a clear rebound with 1.07 billion $ of net inflows during the week ended November 29, according to the latest report from CoinShares.
It is the first positive week since the end of October, a signal that some investors perceive as a possible turning point. James Butterfill, head of research at CoinShares, explains : “the sentiment reversal is explained by remarks from FOMC member John Williams, who stated that monetary policy remains restrictive, thus rekindling hopes for a rate cut this month”.
In detail, the weekly flows were distributed as follows :
- Bitcoin captured 464 million dollars, the largest share of net inflows for the week ;
- Ether followed with 309 million $, despite a still negative monthly trend ;
- XRP recorded 289 million $, its best week ever.
While this renewed interest enabled a weekly turnaround, monthly trends remain mixed. Bitcoin still shows 2.8 billion $ outflows for the month, and Ether 1.4 billion $. Conversely, XRP stands out with nearly 790 million $ inflows over the month, demonstrating a unique dynamic, distinct from the two historical crypto market assets.
Structural catalysts behind XRP’s performance
The rebound in flows towards XRP is not explained only by capital rotation or a temporary improvement.
According to CoinShares, the bullish momentum around the asset is notably fueled by the recent launch of an XRP-backed ETP in the United States, more precisely the Canary Capital XRP ETF , launched in mid-November.
This product triggered a marked renewed interest for XRP, in a context where investors are looking for alternatives to BTC and ETH. CoinShares highlights that the 289 million $ of weekly inflows represent the all-time record for XRP in ETP history, confirming the impact of this new institutional exposure.
Furthermore, inflows are massively located in the United States, with nearly 1 billion $ captured in this single region, despite moderate trading volume due to the long Thanksgiving weekend. Among issuers, Fidelity dominates net inflows with 230 million $, followed by Volatility Shares Trust (160 M$) and BlackRock’s iShares (120 M$). Such concentration reveals institutional interest that, although selective, remains very active on certain high-visibility products.
The ETP market is regaining color after a month of outflows, driven by favorable monetary signals and renewed institutional interest. If the trend continues, this dynamic could mark a turning point in the reallocation of capital towards the most structured and regulated cryptos.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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