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    Crypto ETPs Soar Amidst Increases in Bitcoin, XRP, and Ether Prices

    Ethan CarterBy No Comments2 Mins Read
    Crypto ETPs Soar Amidst Increases in Bitcoin, XRP, and Ether Prices

    Investment products in cryptocurrency ended a four-week decline, attracting approximately $1 billion in new funds after experiencing losses amounting to $5.5 billion over the preceding month.

    Last week, crypto exchange-traded products (ETPs) saw inflows of $1.07 billion, marking their first week of growth since late October, according to the European crypto asset management firm CoinShares.

    James Butterfill, CoinShares’ head of research, attributed this recovery to optimism regarding a possible interest rate cut in the US, inspired by comments from Federal Open Market Committee (FOMC) member John Williams.

    “The shift in sentiment follows FOMC member John Williams’ remarks indicating that monetary policy remains tight, heightening hopes for an interest rate cut this month,” Butterfill stated.

    XRP experiences the highest recorded inflows

    Bitcoin (BTC), Ether (ETH), and XRP (XRP) led the way in ETP inflows last week, with Bitcoin taking the lead at $464 million. Ether and XRP followed with inflows of $309 million and $289 million, respectively.

    Despite these weekly gains, both Bitcoin and Ether remain in negative territory for the month, having recorded outflows of $2.8 billion and $1.4 billion, correspondingly.

    019ad961 e66f 7f1c bdd5 dd0be2cf2003
    Weekly crypto ETP flows by asset as of Friday (in millions of US dollars). Source: CoinShares

    Conversely, XRP funds have shown significant growth, with nearly $790 million in month-to-date inflows, which includes the highest weekly inflows ever recorded for the asset, according to CoinShares.

    Butterfill associated XRP’s increase with recent launches of US exchange-traded funds (ETFs), such as the XRP ETF from Canary Capital, which debuted in mid-November.

    Regionally, the United States was a significant contributor to inflows, drawing nearly $1 billion, even during the quieter trading period over Thanksgiving week, as noted by Butterfill.

    XRP, Stocks, CoinShares, Ethereum ETF, Bitcoin ETF, ETF
    Weekly crypto ETP flows by issuer as of Friday (in millions of US dollars). Source: CoinShares

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

    Related: BlackRock exec expresses ‘perfectly normal’ concerns as IBIT faces $2.3B outflows in November

    The resurgence in crypto ETPs coincided with brief gains across the broader crypto markets last week, with Bitcoin momentarily surpassing $90,000.

    However, this rally was fleeting as BTC dipped below $86,000 on Monday, according to data from CoinGecko.