Digital asset investment products attracted $1.07 billion in net inflows last week, marking a significant reversal after four consecutive weeks of outflows totaling $5.7 billion. The data from CoinShares signals renewed investor confidence in cryptocurrency markets.
The shift in sentiment coincided with comments from Federal Open Market Committee member John Williams regarding monetary policy. His statement that the current policy remains restrictive sparked expectations of a potential interest rate cut this month. Lower interest rates typically benefit risk assets, including cryptocurrencies.
Trading volumes reached $24 billion during the period. This figure represents a decline from the previous week's record $56 billion, largely attributed to reduced market activity over the Thanksgiving holiday.
Bitcoin Products Attract Strong Investor Interest
Bitcoin investment products led the recovery with $464 million in weekly inflows. The influx demonstrates a clear shift in market positioning, with investors moving away from bearish strategies.
Short Bitcoin products experienced $1.9 million in outflows, indicating traders are closing negative bets on price declines. Despite the positive weekly performance, month-to-date Bitcoin flows remain in negative territory at $2.81 billion.
Year-to-date statistics paint a stronger picture. Bitcoin inflows have reached $26.78 billion so far this year, with total assets under management hitting $142.66 billion. The asset maintains its dominant position within digital investment products.
Provider data revealed varied performance across Bitcoin exchange-traded products. Fidelity Wise Origin Bitcoin posted the strongest results with $230 million in inflows. iShares followed with $120 million, while Volatility Shares Trust added $160 million. Grayscale reversed recent trends by recording $56 million in positive flows.
XRP Achieves Record Weekly Performance
XRP investment products set a new weekly record with $289 million in inflows. The surge followed recent approvals for XRP exchange-traded funds in the United States, which generated substantial demand from institutions.
The six-week cumulative inflows represent 29% of total assets under management for XRP products. Month-to-date figures show $785.4 million in positive flows, bringing year-to-date totals to $2.89 billion.
XRP product assets under management currently stand at $3.13 billion. On a percentage basis relative to existing asset levels, XRP's $289.2 million weekly inflow exceeded Bitcoin's performance.
Ethereum and Solana Show Positive Inflows
Ethereum products contributed significantly to the overall recovery with $309.1 million in weekly inflows. However, month-to-date flows remain negative at $1.40 billion. Year-to-date Ethereum inflows total $12.89 billion, with assets under management reaching $25.51 billion.
Solana investment products added $4.4 million during the week. Month-to-date Solana flows reached $101.7 million in positive territory, with year-to-date totals at $3.39 billion. Assets under management for Solana products stand at $3.45 billion.
Multi-asset products attracted $26.3 million in weekly flows. Month-to-date totals for these diversified offerings reached $37.2 million.
Mixed Performance for Other Cryptocurrencies
Other cryptocurrencies showed mixed results. Litecoin recorded minor outflows of $0.9 million, while Sui added $0.6 million. Cardano faced significant redemptions of $19.3 million, representing 23% of its total assets under management.