After a month of massive disengagement, crypto investment products are seeing a spectacular comeback. In a single week, crypto ETPs attracted $1.07 billion, breaking a streak of four consecutive weeks of outflows, totaling $5.5 billion. This renewed interest marks an unexpected turning point in a context of high monetary uncertainty, where markets are scrutinizing signals from the Fed.
In brief
- After four weeks of massive outflows totaling $5.5 billion, crypto ETPs recorded a rebound of $1.07 billion in one week.
- This reversal of trend is linked to a renewed optimism, particularly in the face of the prospect of a drop in interest rates in the United States.
- Bitcoin remains at the top of weekly entries ($464 million), followed by Ether ($309 million), but it is XRP which surprises with an absolute record of $289 million.
- The United States alone accounts for nearly $1 billion of incoming flows, despite reduced activity during Thanksgiving week.
The return of capital: a massive surge in crypto ETPs
After a month marked by massive withdrawals, i.e. $5.5 billion in cumulative outflows in four weeks, crypto ETPs recorded a clear rebound with $1.07 billion in net inflows over the week ended November 29, according to the last report from CoinShares.
This is the first positive week since the end of October, a signal that some investors perceive as a possible inflection point. James Butterfill, head of research at CoinShares,explain Thus : “The turnaround in sentiment was driven by comments from FOMC member John Williams, who said monetary policy remained tight, reviving hopes of a rate cut this month”.
In detail, the weekly flows are distributed as follows:
- Bitcoin captured $464 million, the largest share of the week's net inflows;
- Ether follows with $309 million, despite a still negative monthly trend;
- XRP records $289 million, its best week ever.
Although this renewed interest has enabled a weekly reversal, the monthly trends remain mixed. Bitcoin still shows $2.8 billion in outflows over the month, and Ether $1.4 billion. Conversely,
The structural catalysts behind XRP’s performance
The rebound in flows towards XRP cannot be explained only by a rotation of capital or a temporary improvement.
According to CoinShares, the bullish momentum around the asset is notably fueled by the recent launch of an ETP backed by XRP in the United States, more precisely Canary Capital's XRP ETF, launched in mid-November.
This product has triggered a marked resurgence of interest in XRP, as investors examine alternative opportunities to BTC and ETH. CoinShares highlights that the $289 million in weekly inflows represents the all-time high for XRP in ETP history, confirming the impact of this new institutional exposure.
Furthermore, inbound flows are overwhelmingly located in the United States, with nearly $1 billion captured in this region alone, despite moderate trading volume due to the long Thanksgiving weekend. Among issuers, Fidelity dominates net inflows with $230 million, followed by Volatility Shares Trust ($160 million) and BlackRock's iShares ($120 million). Such concentration reveals an institutional interest which, although selective, remains very active on certain products with high visibility.
The ETP market is regaining color after a month of outflows, driven by favorable monetary signals and a renewed institutional interest. If the trend continues, this dynamic could mark a turning point in the reallocation of capital towards the most structured and regulated cryptos.
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