Crypto ETPs rebound with over $1 billion in weekly inflows prior to latest price slump: CoinShares
Quick Take Crypto investment products registered $1.07 billion worth of net inflows globally last week, according to asset manager CoinShares. The inflows marked a rebound following a four-week negative streak totaling $5.7 billion. However, they came ahead of the latest market slump on Monday.
Global crypto investment products managed by asset managers such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares witnessed net inflows of $1.07 billion last week, according to CoinShares' data.
That marked a turnaround in sentiment following four consecutive weeks of net outflows totaling $5.7 billion, helped by hopes of an imminent U.S. rate cut following comments from FOMC member John Williams stating monetary policy remains restrictive, CoinShares Head of Research James Butterfill noted in a new report .
However, that came before bitcoin dropped by more than 5% early Monday, with the broader crypto market seeing amplified losses amid reports that the Bank of Japan is considering rate hikes in December. It also wasn't enough to prevent a negative month overall, with a total of $3.2 billion exiting global crypto funds during November.
Meanwhile, crypto ETP trading volumes fell to around $24 billion last week, in stark contrast to the record $56 billion the week before — likely due to the U.S. Thanksgiving holiday, Butterfill noted.
Weekly crypto asset flows. Image: CoinShares .
US dominates despite holiday lull
Despite the Thanksgiving holiday, the U.S. continued to dominate weekly flows, with crypto funds in the country adding $994 million alone last week. Digital asset investment products in Canada and Switzerland also notched notable inflows of $97.6 million and $24.6 million, respectively, while Germany was one of the only countries where crypto funds witnessed net outflows, with $55.5 million worth of redemptions.
Bitcoin-based ETPs again led the flows in terms of the underlying asset, adding $461 million last week, with investors reversing bets on further price declines as indicated by the $1.9 million outflows in short-bitcoin ETPs, Butterfill argued.
The U.S. spot Bitcoin exchange-traded funds generated $70.1 million worth of net inflows last week amid the holiday lull, according to data compiled by The Block. That was led by around $230.5 million of inflows into Fidelity's FBTC, offset by substantial outflows from other funds.
Ethereum products also fared better, witnessing net inflows of $308 million globally last week, with the U.S.-based spot Ethereum ETFs accounting for $312.6 million, offset by outflows in other regions.
Meanwhile, XRP-based funds logged a record $289 million in weekly inflows, with their six-week streak now representing 29% of total assets under management — a surge likely tied to the recent U.S. spot ETF launches , Butterfill said.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Cyclical stocks always peak when they're “cheapest” — Citrini, the “chip influencer” who was the earliest to be bullish on AI hardware, is now quietly exiting
Citrini, once the most prominent bull in AI hardware, has now significantly reduced his semiconductor holdings and currently holds some short positions. He believes that the financing structure for AI infrastructure has shifted from tech giants' own cash flows to equity and debt markets, and that sentiment alone could sever the funding chain and impact fundamentals. Strategically, he is long Meta and short Google. Citrini also asserts that the bottleneck in AI pharmaceutical development is not computational power, but rather a "lack of monkeys."
New Zealand Dollar gains ground to near 0.5700 as RBNZ rate hike bets rise
Median survival prolonged by 5.7 months! Roche (RHHBY.US) lung cancer new drug wins in head-to-head trial, major catalyst for oncology business
Roche's investigational lung cancer drug divarasib extended patient survival by nearly six months compared to competing therapies in a late-stage clinical trial, promising to further strengthen the Swiss pharmaceutical company's oncology portfolio.
Global Aging Reshapes Equity and Bond Investment Logic? Pension "Longevity Bill" Accelerates Accumulation, Equities, Bonds, and Private Equity Welcome Massive Long-term Capital
As people live longer and birth rates decline, pension funds are required to allocate their assets for retirement periods that can last decades. Meanwhile, the number of workers contributing to these systems is decreasing.
Crypto prices
More
