Cryptocurrencies bounce amid $921m ETP net inflows

The cryptocurrency market has experienced a notable resurgence, with gains for top assets such as Bitcoin, Ethereum and XRP, coming amid significant capital inflows into digital asset investment products.According to the latest CoinShares Digital Asset Fund Flows weekly report, the sector recorded over $921 million in net inflows last week. This marks a comeback from over $513 million in outflows in the previous week. The turnaround underscores renewed investor confidence in cryptocurrencies, particularly Bitcoin, as market participants reassess monetary policy expectations and macroeconomic risks.Cryptocurrencies bounce amid $921m net inflowsAs noted, the CoinShares report highlights a robust week for digital asset investment products. The $921 million in net inflows recorded globally over the period followed a significant $513 million exit across crypto exchange-traded products in the previous week.Germany also recorded one of its strongest weeks, adding $502 million, while Switzerland saw net outflows of $329 million.Commenting on the demand, CoinShares head of research James Butterfill noted:“The ongoing US government shutdown, and the resulting absence of key macroeconomic data, has left investors with little guidance on the direction of US monetary policy. However, the lower-than-expected CPI data released on Friday helped restore some confidence that further rate cuts are likely this year.”Bitcoin led the charge, attracting $931 million in inflows, as its dominance in the market continues to solidify. This surge aligns with a broader market rally, with Bitcoin’s price climbing over 3.5% in the past week.In contrast, Ethereum logged $169 million in outflows, its first negative week in over a month. However, ETH price seems to be shrugging off the exposure jitters as the altcoin trades to near $4,200.Likewise, data shows interest in Solana and XRP ETPs dropped slightly after huge inflows in the past weeks.Ahead of anticipated crypto exchange-traded funds listings in the US, inflows into Solana products eased to $29.4 million. Meanwhile, XRP saw $84.3 million in weekly inflows. Notably, SOL and XRP have both retested the key levels of $200 and $2.67.Crypto bullish returnsElsewhere, trading volumes in digital asset exchange traded products reached $39 billion for the week, well above the projected year-to-date weekly average of about $28 billion.The volume and the influx of capital signal a shift in institutional sentiment. Notably, major players are reallocating funds to cryptocurrencies after cautious positioning in recent weeks.Bitcoin ETFs, particularly in the US, have seen consistent demand, with traction among institutional investors. Demand for multi-asset products is also picking up. Analysts also see prices rising amid tailwinds around macroeconomic conditions.“Crypto steadied after constructive US–China trade talks set the stage for Thursday’s Trump–Xi summit, where a potential deal could be signed. The outcome may drive near-term direction more than Wednesday’s Fed decision. Any hint of ending quantitative tightening early would support risk assets and re-anchor liquidity,” QCP analysts noted on Monday.The post Cryptocurrencies bounce amid $921m ETP net inflows appeared first on Invezz