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- Digital asset ETPs posted US$1.07bn in fresh inflows after four weeks of withdrawals.
- Hopes for a US rate cut boosted confidence across major markets.
- Bitcoin, Ethereum, and XRP recorded strong and steady inflows.
According to the report, crypto and digital asset investment products saw a clear shift in sentiment last week. Investors added US$1.06bn to ETPs. This marked a sharp recovery after a month of heavy outflows that reached US$5.7bn. Fresh optimism entered the market as comments from FOMC member John Williams influenced expectations.
However, he clarified that the present stance of monetary policy is still tight. Analysts considered this statement as a hint that soon a rate cut may happen. However, activity in terms of trading was low during the week. Volumes in digital assets ETPs were recorded as US$24 billion. This was low, probably due to the Thanksgiving holiday in America.
Canada and Switzerland Maintain Steady Crypto Interest
However, the difference in activity compared with the previous week was remarkable. In that week, record-breaking activity of US$56 billion was achieved. Despite the quiet backdrop, some signs of enhanced confidence were seen.
Momentum was still driven by the United States. Digital assets ETP investments there attracted US$994m. This was despite the holiday season and relatively quiet market conditions. Also showing interest was the Canadian market. Net investments reached US$97.6m. Switzerland was third with US$23.6m.
Germany was different, as it was one of the few investment markets that experienced net outflows. These were valued at US$57.3m. Analysts explain that domestic regulatory issues may well have contributed to the net outflow experienced in this investment market. However, this did not halt the transition towards more optimistic sentiment.
Bitcoin Leads Weekly Inflows With Strong Momentum
Bitcoin attracted net inflows of US$461m. Funds shifted from expectations of a further downturn in prices. Such expectations were also reflected in their views on short-bitcoin ETPs. These assets experienced net redemption worth US$1.9m. Ethereum was also positively affected.
It attracted US$308m in net inflows as traders became more confident in the medium term. XRP was the top performer. It attracted net inflows of US$289m, a record high. The last six weeks of activity contributed to 29% of its entire assets under management.
Analysts link this development with the fact that new exchange-traded fund (ETF) listings in the US contributed significantly to this interest. Cardano, however, defied the trend. Cardano experienced net outflows of US$19.3m. This was despite constituting 23% of its assets under management.
The week ended with evident signs of a revived level of confidence. What the investors closely awaited were the monetary signals. Big digital assets attracted fresh interest, as the market found its direction again.
Related Reading: Bitcoin Set to Disrupt Four-Year Cycle, Grayscale Sees New Highs in 2026
