Crypto News Today: Digital Asset ETFs Record Over $1B of Inflows as Rate-Cut Hopes Spark Market Rebound

Digital asset exchange-traded products (ETPs) snapped a four-week outflow streak last week, attracting more than US$1.06 billion in new capital as expectations for a US Federal Reserve rate cut strengthened.The reversal follows comments from Federal Open Market Committee (FOMC) member John Williams, who said current monetary policy remains “restrictive,” prompting markets to price in a higher probability of easing in December.Sentiment Flips as Investors Return to Crypto ETPsThe shift in investor positioning comes after four consecutive weeks of significant outflows totaling US$5.7 billion. Last week’s inflows of US$1.06 billion mark the strongest vote of confidence since late October.Trading activity, however, remained subdued at US$24 billion, sharply lower than the prior week’s record US$56 billion, largely due to the US Thanksgiving holiday.US Leads with Nearly $1B of InflowsDespite quiet holiday trading conditions, the United States accounted for the overwhelming majority of inflows:United States: US$994 millionCanada: US$97.6 millionSwitzerland: US$23.6 millionGermany: Outflows of US$57.3 million, one of the few regions to post net redemptionsThe strong inflow profile suggests that institutional sentiment in North America has improved meaningfully as rate-cut expectations rise.Bitcoin, Ethereum and XRP See Strong DemandBitcoin ETPs: +US$461 millionInvestors reversed their bearish positioning, with short-Bitcoin products seeing US$1.9 million in outflows, signaling reduced conviction in further downside.Ethereum ETPs: +US$308 millionETH inflows accelerated as macro conditions stabilized, adding to a broader recovery in Ethereum-linked products.XRP ETPs: Record +US$289 millionXRP posted its largest weekly inflow on record, driven in part by renewed demand linked to recent US ETF launches.Over the past six weeks, XRP has attracted inflows equal to 29% of total assets under management (AUM), signaling one of the strongest institutional accumulation trends in the sector.Cardano ETPs: –US$19.3 millionIn contrast, ADA recorded the deepest outflows of the week, equal to 23% of its AUM, indicating a sharp retracement in positioning.What the Flows Reveal About Market PositioningThe rebound in ETP flows illustrates a clear improvement in investor sentiment after weeks of aggressive derisking. Key drivers include:Growing confidence that the Fed will begin easing policyReduced demand for downside hedgesRenewed appetite for large-cap assets like BTC, ETH and XRPETF-driven structural inflows supporting specific assetsWith macro conditions turning more supportive and liquidity pressures easing, analysts expect inflow momentum to continue if the Fed signals readiness to cut rates at the upcoming FOMC meeting.