XRP Demand Builds on ETF ‘Optimism’ as Ethereum Funds Bleed $255 Million – Decrypt

Cryptocurrency funds received whiplash last week between Donald Trump and the Federal Reserve.

Digital asset investment products including spot Bitcoin and Ethereum According to , ETFs saw a total of just $48 million in inflows last week. coin share. Bitcoin products ended the week with $214 million in net inflows, while Ethereum products recorded $255 million in inflows.

Investors started this week with $1 billion in crypto allocations, but the strong start to the new year was quickly outweighed by macro concerns. Hawkish minutes from the Fed's latest meeting and strong views on the U.S. economy led investors to pull $940 million from digital asset investment products, effectively wiping out initial inflows.

“This suggests that the post-US election honeymoon is over, with macroeconomic data once again becoming the dominant driver of asset prices,” wrote James Butterfill, head of research at CoinShares. There is.

Last week's Fed minutes showed policymakers viewed potential changes in immigration and trade policy under President-elect Donald Trump as sources of inflationary pressures. In December, the central bank also signaled that it intended to cut interest rates at a more moderate pace this year.

Equities and crypto assets tend to grow in low interest rate environments where borrowing becomes cheaper and liquidity increases. However, amid a series of reports indicating that the US economy remains strong, some analysts have said: The Fed's easing campaign is effectively over..

Coupled with the recent strength in the U.S. economy, Butterfill said. decryption While Bitcoin's price growth is limited from a macro perspective, “the market appears to be in a negative funk,” he said.

“Upward momentum for Bitcoin is likely to come from the approval of the next Bitcoin-related bill. [Trump’s inauguration] Or there were serious mistakes,” he said.

Over the past week, the price of Bitcoin has fallen by 10%. $91,600touched a two-month low. Meanwhile, the price of Ethereum fell by 18%, $3,000meanwhile XRP remains relatively stable at $2.43.

With XRP products garnering $41 million, Butterfill wrote that there is “increasing optimism” ahead of the altcoin's approval deadline. Spot XRP ETF in the US later this month. Bloomberg ETF analyst James Seifert previously I wrote It is unlikely the application will be taken seriously until the agency's leadership changes under President Trump.

In 2024, investors allocated $42.9 billion to Ethereum and Bitcoin products, raking in them along with cash. The emergence of spot ETFs In 2025, Bitcoin products collected $797 million, while Ethereum products released $274 million so far.

Juan León, senior investment strategist at Bitwise, said that while the lower probability of a Fed rate cut is a net negative for the crypto market, capital inflows could pick up again soon. decryption.

In the U.S., Spot Bitcoin ETFs are subject to a due diligence process among registered investment advisors and news agencies, Leon said. Governments and corporations may also buy Bitcoin as financial firms move forward with the approval process, potentially accelerating capital inflows.

“This will push the price of Bitcoin higher,” Leung said. “We expect inflows to Spot Bitcoin ETFs to be larger this year than last year.”

Edited by Andrew Hayward