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Crypto Funds Roar Back With $1.07 Billion Inflows as Rate-Cut Hopes Surge
Yahoo Finance· 2025-12-01 11:21
Core Insights - Digital asset investment products experienced a significant inflow of $1.07 billion after four weeks of outflows, driven by renewed investor confidence due to expectations of potential US Federal Reserve rate cuts [1][2]. Group 1: Market Trends - The inflow of $1.07 billion follows a period where digital asset exchange-traded products (ETPs) saw outflows totaling $5.7 billion over the previous four weeks, with last week's outflows reaching $1.94 billion [2]. - Market sentiment shifted positively after comments from FOMC member John Williams, which suggested that monetary policy remains restrictive and fueled speculation about a possible rate cut in December [1][2]. Group 2: Geographic Distribution - The US accounted for 93% of total crypto inflows, while Canada and Switzerland saw inflows of $97.6 million and $24.6 million, respectively, indicating strong demand in established crypto-friendly regions [5]. - In contrast, Germany experienced outflows of $55.5 million, reflecting diverging investor confidence and potential year-end portfolio adjustments [5]. Group 3: Asset Performance - Bitcoin led the inflows with $464 million, followed by Ethereum with $309 million, driven by expectations of network upgrades and increased staking [6]. - XRP saw a record inflow of $289 million, highlighting its growing appeal among institutional investors [6]. Group 4: Investor Behavior - Short-Bitcoin ETPs experienced outflows of $1.9 million, indicating a retreat from bearish positions among traders, aligning with a broader optimism in the market [7]. - Cardano faced outflows of $19.3 million, which erased 23% of its assets under management, suggesting selective institutional interest favoring established leaders over altcoins [7]. Group 5: On-Chain Data Insights - On-chain data indicates notable supply movements that support bullish sentiment, with large amounts of XRP being withdrawn from centralized exchanges as new ETFs launch [8].