Cryptocurrency investment products have staged a remarkable comeback, breaking a multi-week losing streak with a significant influx of new capital. This resurgence points to a renewed optimism in the digital asset space, signaling a potential shift in investor sentiment after a period of considerable outflows.
A Strong Reversal in Crypto ETPs
After four consecutive weeks of substantial losses totaling $5.5 billion, crypto exchange-traded products (ETPs) recorded their first week of positive inflows since late October. The sector attracted an impressive $1.07 billion in fresh investment, marking a pivotal turnaround. This rebound is largely attributed to growing anticipation of a potential cut in U.S. interest rates, following recent remarks from Federal Open Market Committee (FOMC) member John Williams, which fueled hopes for a more accommodative monetary policy.
XRP's Record Surge and Top Assets
Among the individual assets, Bitcoin led the weekly gains with $464 million in inflows, followed closely by Ether at $309 million. However, XRP stood out dramatically, securing $289 million in weekly inflows—contributing to nearly $790 million month-to-date and marking its largest weekly inflow on record. This surge in XRP is believed to be linked to recent U.S. ETF launches. Regionally, the United States was the primary driver of this capital influx, accounting for nearly $1 billion of the total, even during a traditionally quieter Thanksgiving week. Prominent issuers like Fidelity, Volatility Shares Trust, and BlackRock's iShares were among the top beneficiaries, reflecting broader institutional engagement in the recovering market.
