Crypto ETF Inflows Signal Renewed Market Confidence

Crypto ETFs are more than just a barometer of sentiment for Bitcoin and other cryptocurrencies, as they document capital flows. Bitcoin ETFs show positive trends, and XRP (Ripple) is also attracting attention through such financial instruments.

Bitcoin is trading around $93,000 on Wednesday, and with a daily gain of 2 percent, it appears to already be pricing in the expected US interest rate cut this evening. Bitcoin ETFs in the US have also seen inflows of around $90 million this week, suggesting a turnaround after the disastrous month of November, which saw a $3.5 billion loss.

The experts at CoinShares analyze capital flows in crypto ETFs and similar financial products worldwide on a weekly basis. Their latest report , as usual, identifies Bitcoin as the driving force, but XRP (Ripple) is also attracting attention.

With approximately $255 million in capital inflows into XRP financial products, Ripple ranked second only to Bitcoin in CoinShares’ analysis last week

Overall, crypto ETFs and related cryptocurrencies saw gains of roughly $716 million globally last week, bringing the total assets under management to over $180 billion. This represents a 7.9 percent increase compared to November, but the total assets under management remain below the record highs of $264 billion. In addition to the significant demand for XRP , it’s noteworthy that financial products for short selling Bitcoin (betting on falling BTC prices) experienced $18.6 million in capital outflows. “Investors seem to believe that the wave of negative sentiment has bottomed out,” concludes CoinShares.

But back to XRP. The first ETFs for XRP have been available in the US since mid-November, and they are performing exceptionally well. Ripple CEO Brad Garlinghouse is delighted, stating on X that the ETFs have almost reached $1 billion in XRP. Statistics from SoSo confirm this and also show that the XRP ETFs have attracted capital every single trading day since their debut. The capital inflow into XRP financial products, as measured by CoinShares, is therefore primarily attributable to the ETFs in the US.

Conclusion: Crypto ETFs cautiously on the rise – macroeconomics remains important

Bitcoin and other crypto ETFs have suffered this year primarily when US President Donald Trump threatened tariffs and questioned the independence of the Federal Reserve. According to CoinShares, Bitcoin financial products attracted around $41.6 billion in global capital inflows in 2024, while this year the figure is “only” $27.1 billion so far.

However, Ethereum, with a projected annual increase of $13 billion for ETH financial products in 2025, and Solana and XRP, each with a good $3 billion increase for ETFs and similar exchange-traded products, are stepping in to fill the gap, demonstrating broad interest in crypto, including from institutional investors.

As an investor, you can see from this that crypto ETFs significantly contribute to price movements and are not unaffected by the global economy. Given current trends, this presents good opportunities for the coming year, particularly for Bitcoin, Ethereum, XRP and Solana – but also risks of setbacks if US policy shifts back to an aggressive course and thus jeopardizes the global economy.

__

(Featured image by Leeloo The First via Pexels)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in BLOCK-BUILDERS.DE. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.