Introduction
Digital asset exchange-traded products reversed a four-week outflow streak with over $1 billion in inflows last week, led by Bitcoin, Ethereum, and XRP funds. The surge came despite a renewed price slump to start the new week, highlighting the ongoing volatility and complex sentiment driving crypto markets.
Key Points
- XRP recorded its largest weekly ETF inflow ever at $289 million, representing 29% of its assets under management over a six-week streak.
- Cardano experienced outflows of $19.3 million last week, equivalent to 23% of its total assets held in crypto funds.
- Trading volumes plunged to $24 billion due to the Thanksgiving holiday, less than half of the prior week's record $56 billion.
A Dramatic Reversal in Fund Flows
Following four consecutive weeks of substantial outflows totaling $5.7 billion, crypto funds staged a significant comeback. According to data from CoinShares, digital asset exchange-traded products attracted $1.07 billion in inflows last week. This positive movement broke a recent losing streak and provided a strong finish to November for the sector, even as underlying asset prices remained volatile.
The inflows were led by Bitcoin ETFs, which pulled in $464 million. Ethereum funds followed with a robust $309 million. The standout performer, however, was XRP, which recorded its largest weekly inflow ever at $289 million. This recent surge is part of a six-week inflow streak for XRP that now represents 29% of its total assets under management in such products, a move analysts at CoinShares linked to new U.S. ETF launches for the asset.
Not all assets shared in the gains. Cardano experienced notable outflows of $19.3 million last week, a figure representing 23% of its total assets held in crypto funds. This divergence underscores the selective investor appetite within the broader digital asset category.
Geographic Divergence and Holiday-Lulled Volumes
The inflow story was heavily concentrated geographically. The United States dominated, accounting for $994 million of the total weekly inflows. Canada contributed $97.6 million, and Switzerland added $23.6 million. Germany was a notable outlier, standing alone among major markets with outflows of $57.3 million.
Despite the large capital movements, overall trading activity was subdued. Trading volumes for exchange-traded crypto products fell to $24 billion, less than half of the previous week’s record $56 billion. This sharp decline was attributed to the Thanksgiving holiday in the United States, which typically dampens market activity.
Fleeting Optimism Meets Renewed Price Pressure
The improved fund flow sentiment last week was accompanied by a price rebound for Bitcoin, which rose above $90,000 ahead of the holiday and held that level through much of the weekend. CoinShares noted that this improved market sentiment was driven in part by comments from Federal Open Market Committee (FOMC) member John Williams regarding restrictive monetary policy, which raised expectations for a potential interest rate cut in December.
However, the renewed optimism proved short-lived. The new week began with a sharp downturn, as losses accelerated overnight into Monday. Bitcoin recently traded around $84,917, reflecting a 7% drop over a 24-hour period. Other major assets like Ethereum, XRP, Solana, and Dogecoin showed even deeper daily losses, quickly erasing the prior week’s gains and plunging markets back into the red.
This pattern highlights the current dichotomy in crypto markets: strong institutional interest and capital inflows into regulated products like ETFs, juxtaposed against persistent and severe price volatility in the underlying assets. The $1 billion inflow serves as a testament to growing product adoption, but the immediate price reaction underscores that macroeconomic cues and trader sentiment continue to dictate short-term market movements.
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