Crypto ETPs See $1 Billion Rebound Before Market Slump

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According to a report by CoinShares, crypto exchange-traded products (ETPs) recorded over $1 billion in net inflows last week, marking a sharp reversal after four consecutive weeks of outflows.

The rebound, led by products from major asset managers including BlackRock, Fidelity, and Grayscale, was driven by renewed investor optimism. Analysts attributed the shift to expectations of US interest rate cuts, following comments from Federal Reserve officials that monetary policy remained restrictive.

However, the inflows were not sustained. Early Monday, Bitcoin fell more than 5% amid broader market declines, triggered by concerns over potential Bank of Japan rate hikes. Despite the weekly rebound, November ended with net outflows of $3.2 billion from global crypto funds overall.

Trading volumes for crypto ETPs also declined significantly last week, dropping to approximately $24 billion from a record $56 billion the previous week—a dip largely attributed to the US Thanksgiving holiday period.