Data from CoinShares has revealed that global crypto investment products managed by the likes of BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares observed net inflows of $1.07 billion in the last week. This noteworthy increase reverses the trend from the previous four weeks, during which net outflows amounting to $5.7 billion were observed.
Change of Sentiment and US Rate Cut Impact
A shift in sentiment following hopes of a U.S. rate cut was credited for this turnaround. The financial markets eagerly anticipated a move towards easing monetary policy, following comments from John Williams, a member of the Federal Open Market Committee, indicating a potential relaxing of monetary policy. This build-up of hopeful sentiment seemingly encouraged the inflow to crypto investment products.
Market Fluctuation Amid Interest Rate News
However, this trend came before a steep drop in Bitcoin value, which fell by more than 5% at the start of the week. The wider cryptocurrency market too experienced significant losses following reports of the Bank of Japan contemplating rate hikes in December. Also, despite the surprising turnaround, it did not shield the cryptocurrency market from negative month-end results, with as much as $3.2 billion leaving global crypto funds during November.
Crypto Trading Volumes
Additionally, volumes of crypto Exchange Traded Products (ETPs) trading fell sharply to approximately $24 billion last week following a record $56 billion in the prior week, which was in part due to the U.S. Thanksgiving holiday.
American Dominance despite Holiday Season
Even amid the Thanksgiving holiday lull, the U.S. maintained its dominance concerning weekly inflows, with crypto funds within the country reporting $994 million added last week alone. Additionally, increased inflows of crypto investment products were noticed in Canada and Switzerland, amounting to $97.6 million and $24.6 million, respectively. Only in Germany did the cryptocurrency funds experience net outflows, with a sizable $55.5 million worth of redemptions.
Bitcoin and Ethereum ETFs Lead the way
Bitcoin-linked ETPs recorded the highest in terms of inflows, reporting an addition of $461 million last week. This trend indicates a reversal in bets on further price declines of Bitcoin, as reflected by an outflow of $1.9 million in short-Bitcoin ETPs. In the U.S., spot Bitcoin exchange-traded funds collected $70.1 million worth of net inflows during this holiday lull. Notably, Fidelity’s FBTC alone attracted around $230.5 million offset by substantial outflows from other funds.
Ethereum products also fared better, seeing global net inflows of $308 million last week. Here, U.S.-based spot Ethereum ETFs were responsible for $312.6 million, counterbalanced by outflows from other areas.
Record Inflows for XRP-Based Funds
On a remarkable note, XRP-linked funds registered a record $289 million in weekly inflows, with their six-week stretch now accounting for 29% of total assets under management. This increase is closely linked to recent launches of U.S. spot ETFs.
It is important to note that this report provides information for informational purposes and not legal, tax, investment, financial, or other advice. The overall picture provided here could assist potential investors in understanding the crypto market dynamics and investment trends.

