Digital asset investment products saw a net inflow of USD 1.06 billion last week…reversal of a four-week outflow trend

Digital asset (cryptocurrency) investment products experienced a net inflow of about USD 1.06 billion last week, marking a reversal of a four-week outflow trend.

On the 1st (local time), according to CoinShares, a digital-asset-focused asset manager, digital asset ETPs saw total inflows of USD 1.06 billion last week. Net outflows of USD 5.7 billion were recorded over the previous four weeks, but remarks by John Williams, president of the New York Fed, which highlighted expectations for an interest rate cut this month, are analyzed as having provided a catalyst for reversing investor sentiment.

The U.S. market accounted for the majority of inflows. Despite reduced trading volume due to the Thanksgiving holiday, the U.S. saw USD 994 million in inflows, followed by Canada with USD 97.6 million and Switzerland with USD 23.6 million. Germany recorded a net outflow of USD 57.3 million, making it the only major country to see funds leave.

Bitcoin (BTC) exchange-traded products (ETPs) saw USD 461 million in inflows. In contrast, short (short-selling) Bitcoin products experienced USD 1.9 million in outflows, showing a complete reversal in investor positioning. Ethereum (ETH) also had net inflows of USD 308 million, reflecting improved sentiment.

XRP recorded a record weekly inflow of USD 289 million. The cumulative inflows over the past six weeks correspond to about 29% of XRP ETP assets under management (AuM), and are interpreted as reflecting the impact of the launch of new XRP ETFs in the United States.

By contrast, Cardano (ADA) saw outflows of USD 19.3 million over the same period, reducing its assets under management by 23%.