Rebound in Crypto ETPs as Bitcoin Leads Amid XRP Surge
By: Eliza Bennet
The crypto market witnessed a remarkable shift as crypto-related exchange-traded products (ETPs) experienced significant inflows, ending a five-week outflow streak. According to the latest report from CoinShares, ETPs recorded strong weekly inflows totaling $644 million, reflecting a notable improvement in investor sentiment toward digital assets. The resurgence in inflows resulted in a 6.3% increase in total assets under management (AUM) from the March 10 low, bringing the total AUM to $134.5 billion.
Bitcoin played a pivotal role in this positive turnaround, pulling in a substantial $724 million in fresh capital. This marks the conclusion of its previous five-week streak of $5.4 billion in outflows. Much of the new activity was directed towards US-listed spot Bitcoin ETFs, with BlackRock’s iShares Bitcoin Trust leading by securing $464 million in inflows. Fidelity's FBTC followed by attracting $136 million, accompanied by ARK 21Shares with $75 million. Additionally, short-Bitcoin products saw outflows worth $7.1 million, further underscoring the bullish sentiment.
The optimism surrounding crypto ETPs was not limited to the United States alone. Switzerland contributed $15.9 million, Germany added $13.9 million, and Hong Kong posted $1.2 million in inflows, demonstrating a widespread positive sentiment beyond American shores. Alongside Bitcoin, XRP emerged as a leader among altcoin inflows with $6.7 million, benefiting from the positive news of the US SEC dropping its lawsuit against Ripple Labs.
Despite this positive trend, Ethereum faced challenges, registering outflows of $86 million. Other altcoins like Polygon and Chainlink logged modest gains, while Sui, Polkadot, Tron, and Algorand encountered minor redemptions. This divergent sentiment highlights a mixed outlook for altcoins, while Bitcoin and XRP take the lead in attracting new investments. The recent inflows could signal a potential broader market recovery following a challenging period for digital asset investment products.
