Crypto ETPs snap 4-week slide with $1B inflows as XRP posts its best week

Cryptocurrency investment products snapped a four-week losing streak last week, drawing in around $1 billion in fresh money following four consecutive weeks of losses totaling roughly $5.5 billion.

Crypto exchange-traded products (ETPs) recorded $1.07 billion of inflows last week, their first week of gains since late October, according to the European crypto asset manager CoinShares.

James Butterfill, CoinShares’ head of research, attributed the rebound to optimism over a potential US interest rate cut, following remarks from Federal Open Market Committee (FOMC) member John Williams.

“The turnaround in sentiment follows FOMC member John Williams comments stating monetary policy remains restrictive, raising hopes for an interest rate cut this month,” Butterfill noted.

XRP sees the largest inflows on record

Bitcoin (BTC), Ether (ETH) and XRP (XRP) were the top performers in ETP inflows last week, with Bitcoin leading the gains at $464 million. Ether and XRP were followed with $309 million and $289 million, respectively.

Despite the weekly gains, both Bitcoin and Ether remain in negative territory for the month, with outflows of $2.8 billion and $1.4 billion, respectively.

XRP funds have moved in the opposite direction. They have recorded nearly $790 million in month-to-date inflows, including the largest weekly inflows on record for the asset, according to CoinShares.

Butterfill linked XRP’s surge to recent US exchange-traded fund (ETF) launches, such as Canary Capital’s XRP ETF, which debuted in mid-November.

Regionally, the United States drove inflows with nearly $1 billion, even amid subdued trading during the Thanksgiving week, Butterfill said.

Among issuers, Fidelity recorded the largest inflows at $230 million, followed by Volatility Shares Trust with $160 million and BlackRock’s iShares at $120 million.

Related: BlackRock exec says ‘perfectly normal’ as IBIT sees $2.3B outflows in Nov

The rebound in crypto ETPs coincided with short-term gains across broader crypto markets last week, with Bitcoin briefly re-climbing above $90,000.

However, the rally was short-lived, as BTC slipped below $86,000 on Monday, according to CoinGecko data.