XRP Leads $1.07B Weekly Inflows as Fed Rate‑Cut Hopes Boost Crypto Funds
Crypto investment products saw $1.07 billion in net inflows last week, reversing four weeks of outflows totaling $5.7 billion as investors priced in a potential Federal Reserve rate cut. XRP recorded a record weekly inflow of $289 million, its sixth consecutive week of net inflows and representing roughly 29% of XRP ETP assets under management (AUM). The surge followed launches and approvals of U.S. spot XRP ETFs from issuers including Canary Capital, Grayscale, Bitwise and Franklin Templeton, with 21Shares joining and some XRP-related AUM surpassing $680 million for certain issuers. Bitcoin ETPs led overall flows at $461–464 million, while Ethereum ETPs added about $308–309 million. Short-Bitcoin products saw $1.9 million of outflows, implying reduced bearish positioning. Regionally, the U.S. accounted for the bulk of inflows ($994 million), Canada $97.6 million and Switzerland $23.6 million; Germany posted $57.3 million of outflows. Notable redemptions included Cardano with $19.3 million withdrawn (≈23% of its ETP AUM). Weekly trading volumes were lower (~$24B vs. $56B the prior week, affected by the Thanksgiving holiday). For traders, these flows indicate renewed institutional and retail demand — especially for XRP and Bitcoin — driven by changing rate expectations. Key metrics to monitor: weekly flows, AUM changes, short-product activity, and Fed/central-bank communications that could alter risk appetite. This is informational and not financial advice.
Bullish
Large, concentrated inflows into XRP, Bitcoin and Ethereum ETPs—especially a record week for XRP tied to U.S. spot ETF launches—signal renewed demand that typically supports price upside. The net outflows from short‑Bitcoin products reinforce a reduction in bearish positioning, which can amplify short‑term upward momentum for BTC. Regional allocation (dominant US inflows) and sizable AUM shifts (XRP and BTC) suggest institutional participation rather than only retail speculation, improving liquidity and market depth for the affected tokens. In the short term, traders may see increased buying pressure and volatility around ETF-related flows and headline risk (fund launches, approvals, and Fed communications). In the medium to long term, sustained inflows and ETF adoption could underpin higher baseline demand and narrower selling pressure, supporting a constructive price environment — provided macro conditions (rate cuts) materialize. However, if inflows prove transitory or macro sentiment reverses, the initial bullish effect could fade, so monitoring flows, AUM trends and central bank guidance is essential.