$10.7 billion inflow of digital asset ETPs in a single week: XRP sets a historical record, Fed interest rate cut expectations drive sentiment reversal.

The digital asset market experienced a significant reversal this week after a massive outflow of 5.7 billion USD over four consecutive weeks. Following comments from Fed FOMC member John Williams, expectations for an imminent interest rate cut in the U.S. have risen, leading to an inflow of 1.07 billion USD into digital asset ETPs last week, making it one of the strongest capital recoveries in recent times.

Despite the Thanksgiving holiday causing overall trading volume to drop to $24 billion (far below the historical high of $56 billion from the previous week), the U.S. market still led the globe with an inflow of $994 million, followed by Canada ($97.6 million) and Switzerland ($23.6 million). Germany, on the other hand, became one of the few markets to experience outflows, with capital leaving at $57.3 million.

In terms of major assets, Bitcoin attracted $461 million in inflows, while short Bitcoin products saw an outflow of $1.9 million, indicating a significant reduction in investor expectations for market decline. Ethereum continued the trend of capital inflows, recording $308 million last week.

XRP has reached a historic moment, setting a record with a single-week inflow of $289 million. The inflow of funds over the past six weeks has reached 29% of its assets under management, clearly reflecting the surge in institutional demand brought about by the launch of the US spot XRP ETF. In contrast, Cardano has experienced an outflow of $19.3 million, accounting for 23% of its AuM, making it one of the worst-performing mainstream assets.

Overall, the warming market sentiment, rising expectations for interest rate cuts, and the sustained attractiveness of US ETFs collectively drive the digital asset to show a net inflow pattern again, suggesting that the liquidity may be entering a new cyclical recovery phase.