2 min readDigital asset ETPs see US$1B of inflows as sentiment rebounds
Digital asset ETPs recorded US$1.06B in inflows after four weeks of heavy outflows, helped by hopes of an imminent US rate cut following comments from FOMC member John Williams.
The US led with nearly US$1B of inflows despite subdued Thanksgiving-week trading volumes.
Bitcoin, Ethereum and XRP attracted strong inflows (US$461M, US$308M and a record US$289M respectively).
Digital asset investment products saw inflows totalling US$1.06B last week, marking a turnaround in sentiment following 4 consecutive weeks of outflows that ran up to US$5.7B. The turnaround in sentiment follows FOMC member John Williams comments stating monetary policy remains restrictive, raising hopes for an interest rate cut this month. Trading volumes in digital asset ETPs for the week were low at US$24B, likely due to Thanksgiving, and in stark contrast to the week prior which saw the largest volumes on record at US$56B.
Despite Thanksgiving, the US saw inflows totalling US$994M last week, with notable inflows from Canada (US$97.6M) and Switzerland (US$23.6m). Conversely, Germany was one of the only countries to see outflows, totalling US$57.3M.
Bitcoin saw US$461M of inflows last week with investors reversing bets on further prices declines as indicated by the US$1.9M outflows in short-bitcoin ETPs. Ethereum also benefitted from improving sentiment with inflows of US$308m last week.
XRP saw the largest weekly inflows on record totalling US$289M with the last 6-week run of inflows representing 29% of assets under management (AuM), likely associated with the recent US ETF launches. Conversely, Cardano saw outflows of US$19.3M, 23% of its AuM.
