Cryptocurrency investment products broke a four-week losing streak and attracted about $1 billion in fresh money after suffering 4 straight weeks of losses totaling $5.5 billion.
According to data from European crypto asset manager CoinShares, cryptocurrency exchange-traded products (ETPs) recorded $1.07 billion in inflows last week, the primary week of gains since late October.
James Butterfill, head of research at CoinShares, attributed the rally to optimism a couple of possible U.S. rate of interest cut following remarks from Federal Open Market Committee (FOMC) member John Williams.
“The shift in sentiment follows comments from FOMC member John Williams that monetary policy stays tight, raising hopes of a rate cut this month,” Butterfill noted.
XRP is seeing its largest inflows since records began
Bitcoin (BTC), Ether (ETH) and XRP (XRP) were the highest performers in ETP inflows last week, with Bitcoin posting the biggest gain at $464 million. Ether and XRP followed with $309 million and $289 million, respectively.
Despite the weekly gains, each Bitcoin and Ether remain in negative territory for the month, with outflows of $2.8 billion and $1.4 billion, respectively.
Weekly crypto ETP flows by asset as of Friday (in hundreds of thousands of US dollars). Source: CoinShares
XRP funds have moved in the other way. According to CoinShares, they’ve seen nearly $790 million in inflows for the reason that start of the month, including the biggest weekly inflows ever for the asset.
Butterfill linked XRP's rise to the recent launch of exchange-traded funds (ETFs) within the US, corresponding to Canary Capital's XRP ETF, which launched in mid-November.
Regionally, the United States accounted for nearly $1 billion in inflows, even with subdued trading during Thanksgiving week, Butterfill said.
Among issuers, Fidelity saw the biggest inflows at $230 million, followed by Volatility Shares Trust at $160 million and BlackRock's iShares at $120 million.
The rally in crypto ETPs coincided with short-term gains in broader crypto markets last week, with Bitcoin briefly reaching over $90,000.
However, the rally was short-lived as BTC fell below $86,000 on Monday, in accordance with data from CoinGecko.
