Crypto Investors Return As ETPs End Bearish Streak: The Comeback Is On

Money's flowing back into crypto—and the exchange-traded product market just flipped the script.

After weeks of outflows, the ETP space snapped its losing streak. That's not just a technical reversal; it's a sentiment shift. Institutional and retail capital is finding its way back into digital asset vehicles, signaling that the fear might finally be priced out.

The Turnaround Signal

ETPs act as a critical liquidity gauge. When they bleed, it often reflects broader market anxiety. When they attract fresh capital, it suggests a renewed belief in the underlying asset class's trajectory. This reversal didn't happen in a vacuum—it's a direct response to shifting macro winds and a reassessment of crypto's risk-reward profile.

What's Driving the Return?

Forget complex narratives. It boils down to a simple, powerful dynamic: perceived opportunity outweighing perceived risk. Traders aren't just dipping a toe back in; they're repositioning for what they see as the next leg up. The flow reversal suggests a building consensus that the bottoming process is complete, or at least, that the downside from here is limited.

Of course, this being finance, a healthy dose of skepticism is warranted. Some of this inflow likely represents the same fast money that fled at the first sign of trouble—proving once again that in markets, memory is the second-shortest thing after a trader's patience.

The streak is broken. The question now is whether this is a dead-cat bounce or the start of a sustainable trend. The returning investors are betting it's the latter.

In brief

• After four weeks of massive outflows totaling 5.5 billion $, crypto ETPs register a rebound of 1.07 billion $ in one week.
• This trend reversal is linked to renewed optimism, particularly regarding the prospect of an interest rate cut in the United States.
• Bitcoin remains the leader in weekly inflows (464 M$), followed by Ether (309 M$), but XRP surprises with an all-time record of 289 M$.
• The United States alone concentrates nearly 1 billion $ of incoming flows, despite reduced activity during the Thanksgiving week.

The return of capital : a massive surge in crypto ETP

After a month marked by massive withdrawals, totaling 5.5 billion dollars of cumulative outflows in four weeks, crypto ETPs registered a clear rebound with 1.07 billion $ of net inflows during the week ended November 29, according to the latest report from CoinShares.

It is the first positive week since the end of October, a signal that some investors perceive as a possible turning point. James Butterfill, head of research at CoinShares, explains : “the sentiment reversal is explained by remarks from FOMC member John Williams, who stated that monetary policy remains restrictive, thus rekindling hopes for a rate cut this month”.

In detail, the weekly flows were distributed as follows :

• Bitcoin captured 464 million dollars, the largest share of net inflows for the week ;
• Ether followed with 309 million $, despite a still negative monthly trend ;
• XRP recorded 289 million $, its best week ever.

While this renewed interest enabled a weekly turnaround, monthly trends remain mixed. Bitcoin still shows 2.8 billion $ outflows for the month, and Ether 1.4 billion $. Conversely, XRP stands out with nearly 790 million $ inflows over the month, demonstrating a unique dynamic, distinct from the two historical crypto market assets.

Structural catalysts behind XRP’s performance

The rebound in flows towards XRP is not explained only by capital rotation or a temporary improvement.

According to CoinShares, the bullish momentum around the asset is notably fueled by the recent launch of an XRP-backed ETP in the United States, more precisely the Canary Capital XRP ETF, launched in mid-November.

This product triggered a marked renewed interest for XRP, in a context where investors are looking for alternatives to BTC and ETH. CoinShares highlights that the 289 million $ of weekly inflows represent the all-time record for XRP in ETP history, confirming the impact of this new institutional exposure.

Furthermore, inflows are massively located in the United States, with nearly 1 billion $ captured in this single region, despite moderate trading volume due to the long Thanksgiving weekend. Among issuers, Fidelity dominates net inflows with 230 million $, followed by Volatility Shares Trust (160 M$) and BlackRock’s iShares (120 M$). Such concentration reveals institutional interest that, although selective, remains very active on certain high-visibility products.

The ETP market is regaining color after a month of outflows, driven by favorable monetary signals and renewed institutional interest. If the trend continues, this dynamic could mark a turning point in the reallocation of capital towards the most structured and regulated cryptos.

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