Digital Asset ETPs Post US$1 Billion Inflows as Market Sentiment Recovers

Source: DefiPlanet Original Title: Digital Asset ETPs Post US$1 Billion Inflows as Market Sentiment Recovers Original Link:

Quick Breakdown

• Digital asset ETPs saw US$1.07B in inflows after four weeks of heavy outflows totalling US$5.7B.
• Bitcoin, Ethereum, and XRP led inflows, with XRP posting a record weekly gain of US$289M.
• US investors drove nearly US$994M of inflows, reflecting renewed confidence ahead of potential interest rate cuts.

Digital asset exchange-traded products (ETPs) recorded US$1.07 billion in inflows last week, marking a sharp turnaround after four consecutive weeks of outflows totalling US$5.7 billion. Investor optimism followed comments from FOMC member John Williams, who said monetary policy remains restrictive but raised hopes of a potential interest rate cut.

US leads inflows despite low trading activity

The United States dominated inflows, contributing nearly US$994 million, with additional support from Canada (US$97.6 million) and Switzerland (US$23.6 million). Germany was among the few countries to experience outflows, totalling US$57.3 million. Overall trading volumes for digital asset ETPs declined to US$24 billion during the Thanksgiving week, down from the previous week’s record US$56 billion, reflecting seasonal subdued activity rather than weakening investor interest.

Bitcoin, Ethereum, and XRP attract strong investor demand

Bitcoin attracted US$464 million in inflows as investors unwound earlier bearish bets, while Ethereum picked up US$309 million on the back of improving sentiment. XRP posted a record weekly inflow of US$289 million, helped by the recent launch of U.S. ETFs — its six-week streak now makes up 29% of its total assets under management. Cardano, meanwhile, saw US$19.3 million in outflows, about 23% of its AuM, underscoring how investors have become more selective across the ETP market.

Market analysts suggest that the surge in inflows signals renewed confidence in digital assets and growing institutional participation. The rebound shows just how closely digital asset ETPs react to macro signals, especially shifts in U.S. interest rate expectations, and it reinforces the dominance of major cryptocurrencies as the main channels for investment. With sentiment beginning to steady, these renewed inflows could signal a period of consolidation, and possibly renewed growth, for digital asset investment products in the weeks ahead.

Interestingly, digital asset investment products also recorded their strongest weekly performance on record, attracting US$5.95 billion in inflows amid weak U.S. employment data and renewed macroeconomic uncertainty.