Crypto ETFs log a decisive recovery this week, pulling in $1.07 billion in net inflows to reverse a month-long trend of institutional capitulation. The sudden liquidity pivot, detailed in CoinShares’ latest fund flows report, signals a renewed “risk-on” appetite among asset managers, driven primarily by a historic surge in XRP allocations and strengthening macroeconomic signals for a Federal Reserve rate cut.
Breaking the Crypto ETFs Outflow Streak
The influx marks a sharp turnaround after four consecutive weeks of heavy bleeding, during which digital asset products shed approximately $5.7 billion. James Butterfill, Head of Research at CoinShares, attributed the reversal directly to shifting monetary policy expectations.
“The turnaround in sentiment follows FOMC member John Williams comments stating monetary policy remains restrictive, raising hopes for an interest rate cut this month,” Butterfill wrote in Volume 262 of the weekly report.
Despite the U.S. Thanksgiving holiday depressing overall trading volumes, which fell to $24 billion compared to the prior week’s record $56 billion, American investors led the charge. The U.S. market accounted for (97.6 million) and Switzerland ($23.6 million). Germany remained the notable outlier, recording outflows of $57.3 million.
XRP Hits Record Crypto ETFs Inflow Highs
While Bitcoin captured the largest nominal share of capital, the standout metric was the institutional rotation into XRP. XRP investment products recorded $289 million in weekly inflows, the largest weekly total on record for the asset.
This surge coincided with the launch of new regulated products, specifically the Bitwise XRP ETF (Ticker: XRPC). Senior Bloomberg ETF Analyst Eric Balchunas highlighted the significance of this launch on social media.
“Congrats to $XRPC for $58 million in day one volume, the most of any ETF launched this year,” Balchunas stated on X. According to CoinShares data, the momentum for XRP is structural rather than transient. The last six weeks of inflows now represent 29% of the asset’s total Assets under Management (AuM), indicating a rapid accumulation phase by institutional allocators.
Bitcoin and Ethereum Join the Rally
The broader market also benefited from the sentiment shift. Bitcoin products attracted $461 million in inflows, while Short-Bitcoin products saw minor outflows of $1.9 million, suggesting that bears were unwinding positions. Ethereum, which has lagged in recent months, pulled in $309 million, while Solana products rebounded with $45.7 million in positive flows.
Farside Investors data shows that despite the altcoin surge, Bitcoin remains the dominant force in the regulated space. Cumulative net inflows for U.S. Spot Bitcoin ETFs currently stand at $57.7 billion, compared to just over $12.8 billion for Spot Ether ETFs.
Chain Street’s Take
The numbers point to a split recovery. The $1 billion headline inflow looks strong, but the real action sits inside the rotation toward XRP. Big investors aren’t content with riding Bitcoin anymore. They’re hunting for assets with clearer regulatory footing or a sharper utility story, and XRP checks both boxes right now.
The Bitwise XRP ETF is the clearest tell. Its launch pulled in heavy demand, showing that Wall Street is warming to assets that once felt too niche as long as they come packaged inside a regulated wrapper.
If the Federal Reserve follows through with a December rate cut, this week’s inflows may be less of a one-off and more of the start of a Q1 liquidity build.
