TL;DR
Institutional demand for digital asset funds returned with strength as global inflows surpassed $1.07B during the past week. The rebound followed a month marked by substantial withdrawals and reflects a clear improvement in sentiment tied to the macro backdrop in the United States. Investors increased exposure to Bitcoin, Ethereum and XRP, while demand for short-oriented strategies continued to decline.
The recovery gained traction after comments from Federal Reserve officials noting that monetary conditions remain restrictive, raising expectations of a near-term rate adjustment. Trading volumes in exchange-traded crypto products slowed to $24B during the Thanksgiving period, yet institutional desks continued allocating capital into regulated vehicles.
The United States dominated with $994 million in new inflows. Canada added $97.6 million, and Switzerland contributed $23.6 million, while Germany reported $57.3 million in outflows, one of the few markets still holding a defensive stance. North America remains the central engine of institutional activity, with major issuers absorbing most of the renewed demand.
Bitcoin products attracted $464 million as investors reduced bearish exposure, evidenced by $1.9 million withdrawn from short-bitcoin vehicles. The shift indicates renewed confidence after several weeks of cautious positioning. Ethereum followed with $308 million, supported by stronger derivatives activity and anticipation around upcoming institutional offerings tied to the asset.
XRP delivered an unprecedented $289 million, its largest weekly inflow on record. Over the past six weeks, inflows represent 29% of total assets under management, highlighting its growing relevance among institutional allocators. Cardano posted $19.3 million in outflows, nearly a quarter of its AUM, reinforcing weakening demand for mid-cap alternatives.
Solana added $4.4 million and continues to build consistent momentum this year. Its month-to-date inflows exceed $100 million, strengthening its position as the preferred high-throughput network for institutions.
The increase in Bitcoin and Ethereum inflows aligns with stronger liquidity across exchanges and deeper participation from professional traders. Despite the holiday-driven slowdown in ETP turnover, derivatives markets show rising open interest and more stable funding rates, suggesting a healthier and more balanced trading structure.
