Digital asset investment products staged a strong comeback last week after nearly a month of heavy withdrawals, with CoinShares reporting $1.07 billion in fresh inflows. The reversal comes after $5.7 billion exited the market over the previous four weeks, a period marked by uncertainty around U.S. monetary policy. The shift in sentiment appears tied to growing expectations that the Federal Reserve may soon lower interest rates, a possibility that has sparked renewed appetite for crypto-linked funds.
According to James Butterfill, Head of Research at CoinShares, investor confidence improved noticeably after Federal Open Market Committee member John Williams remarked that policy remains firmly restrictive. His comments were interpreted as a signal that the central bank could move toward a rate cut as early as this month, pushing institutional investors back into digital asset products after weeks of caution.
The United States accounted for the bulk of the inflows, pulling in $994 million. Canada followed with $97.6 million, while Switzerland recorded $23.6 million. Sentiment was more mixed in Europe, where Germany saw $55.5 million in outflows, suggesting that some investors were taking profits or reducing exposure despite the broader improvement in risk appetite. The uneven regional picture reflects how monetary expectations are influencing investment decisions differently across markets.
Bitcoin remained the top beneficiary, attracting $464 million as institutions continued to favour the asset as a primary entry point. Ethereum followed with $309 million in inflows, buoyed by ongoing upgrades and steady interest in its staking ecosystem. XRP emerged as the standout performer of the week, securing $289 million and setting a new weekly inflow record. Institutional demand for XRP has accelerated in recent weeks, partially driven by developments surrounding potential U.S. exchange-traded products.
Not all digital assets shared in the momentum. Cardano recorded $19.3 million in outflows, representing nearly a quarter of its assets under management, signalling sustained selling pressure. Bearish sentiment also eased, with short-Bitcoin products seeing $1.9 million in outflows, as fewer investors positioned for downside moves.
At the fund-provider level, inflows were broad but uneven. Fidelity’s Bitcoin fund added $230 million, iShares products brought in $120 million, and Grayscale posted $56 million. Smaller asset managers collectively contributed $504 million. Meanwhile, Bitwise and ARK 21Shares registered slight outflows, indicating that investor interest is concentrating around the largest issuers.
Trading activity across digital asset exchange-traded products dropped to around $24 billion, down from $56 billion the week before—likely influenced by the Thanksgiving holiday. On-chain data also revealed significant XRP withdrawals from centralised exchanges, suggesting that investors may be shifting holdings into long-term storage, reducing circulating supply in the short term.
Overall, the latest data points to a cautious but improving landscape for digital asset investment products. The prospect of monetary easing, combined with renewed institutional interest, has helped stabilise inflows, with Bitcoin, Ethereum, and XRP leading the recovery while smaller altcoins continue to face headwinds.
