Crypto ETPs Witness Record Inflows Amid Market Optimism

According to Cointelegraph, cryptocurrency exchange-traded products (ETPs) experienced their largest inflows of the year last week, reaching a total of $2.2 billion. This surge was largely driven by optimism surrounding the upcoming inauguration of US President-elect Donald Trump, as highlighted by CoinShares research lead James Butterfill in the latest fund flows report dated January 20. Bitcoin (BTC) saw a significant rise of 15% over the last trading week, pushing the total assets under management in crypto ETPs to a historic high of $171 billion. The substantial inflows into crypto investment products followed minor inflows of $47 million during the second week of 2025. Crypto ETP trading volumes globally remained robust at $21 billion, accounting for 34% of total Bitcoin trading volumes on trusted exchanges, according to Butterfill. The $2.2 billion inflows last week were primarily driven by Bitcoin ETPs, which attracted $1.9 billion, bringing the year-to-date inflows to $2.7 billion. Interestingly, despite the recent price increases, there were minor outflows from short positions amounting to $0.5 million, a deviation from the typical pattern of inflows following positive price momentum. Ethereum (ETH)-based ETPs recorded $246 million in inflows last week, correcting the significant outflows observed earlier this year. However, Ether ETPs remain the poorest performer in terms of inflows for the year, with year-to-date outflows totaling $28 million. Meanwhile, XRP (XRP) continued its upward trend, with XRP-based ETPs seeing $31 million in inflows. Since November 2024, inflows to XRP ETPs have surged to $484 million. BlackRock’s iShares crypto exchange-traded funds (ETFs) maintained strong performance last week, with $897 million in inflows. Conversely, Grayscale’s crypto ETFs continued to experience outflows, totaling $145 million last week, bringing the year-to-date outflows to $268 million. Regionally, the United States led with $2 billion in inflows, while Switzerland and Canada also saw healthy inflows of $89 million and $13 million, respectively.