Cryptocurrency investment products snapped a four-week losing streak, attracting about $1 billion in modern funds after four consecutive weeks of losses totaling $5.5 billion.
Exchange-traded products (ETPs) saw inflows of $1.07 billion last week, marking the first week of gains since behind schedule October. According to to European crypto asset manager CoinShares.
James Butterfill, head of research at CoinShares, following comments from Federal Open Market Committee (FOMC) member John Williams, linked the rebound to optimism related to a potential interest rate cut in the US.
“The turn in sentiment follows comments from FOMC member John Williams that monetary policy remains tight, raising hopes for an interest rate cut this month,” Butterfill noted.
XRP records highest inflows in history
Bitcoin (BTC), Ether (ETH), and XRP (XRP) were the top performers in ETP inflows last week, with Bitcoin leading gains with $464 million. This was followed by Ether and XRP, which earned $309 million and $289 million, respectively.
Despite weekly gains, both Bitcoin and Ether remain negative this month, with outflows of $2.8 billion and $1.4 billion, respectively.
XRP funds went in the opposite direction. According to CoinShares, they have recorded nearly $790 million in inflows since the beginning of the month, including the largest-ever weekly inflows for the asset.
Butterfill linked XRP’s surge to the recent launch of U.S. exchange-traded funds (ETFs), such as Canary Capital’s XRP ETF, which debuted in mid-November.
Regionally, the U.S. generated nearly $1 billion in inflows, even with feeble trading during Thanksgiving week, Butterfill said.
Among issuers, the largest inflow of funds was recorded by Fidelity – USD 230 million, followed by Volatility Shares Trust – USD 160 million and iShares BlackRock – USD 120 million.
Related: BlackRock executive says it’s ‘completely normal’ as IBIT reported $2.3 billion outflow in November
The rebound in crypto ETPs coincided with short-term gains in broader cryptocurrency markets last week, with Bitcoin briefly reaching above $90,000.
This enhance was short-lived, however, as BTC fell below $86,000 on Monday, According to to CoinGecko data.
Warehouse: Animoca is betting on the growth of altcoins, the analyst expects 100,000. Bitcoin dollars: Hodler’s Digest, November 23–29
