The global cryptocurrency market is showing signs of recovery following a downturn in late March, with XRP emerging as a key player in this rebound. According to a recent report from CoinShares, total inflows into crypto investment products reached $224 million last week, marking the largest weekly inflow since December. This resurgence comes after a significant pullout of $414 million from these funds amid concerns over geopolitical tensions, particularly relating to Iran, and fears of rising inflation.
James Butterfill, Head of Research at CoinShares, highlighted that although the overall sentiment improved, the latter part of the week saw a reversal in momentum due to stronger macroeconomic data and hawkish investor sentiment. “Stronger-than-expected retail sales data and mixed geopolitical signals led to minor outflows towards the end of the week,” he noted.
Interestingly, European investors were at the forefront of this recovery. Switzerland led the charge with a substantial $151.5 million influx into crypto funds, followed closely by Germany with $27.7 million. In contrast, the US managed only $27.5 million, while Canada contributed $11.2 million.
XRP, the fifth-largest cryptocurrency by market capitalization, saw the most notable inflows, totaling $119.6 million—the highest since mid-December. This surge has brought XRP’s year-to-date inflows to $159 million, representing about 7% of the category’s Assets under Management (AuM). However, it’s worth mentioning that US-listed XRP exchange-traded funds (ETFs) faced their first monthly outflows since their launch in November, recording a reduction of $31.1 million.
In contrast, Bitcoin funds also experienced a modest revival with $107.3 million in inflows, although they remain in a negative territory for April with $145 million in outflows so far. Notably, short Bitcoin investment products recorded $16 million in inflows, indicating a divided sentiment among investors regarding Bitcoin’s future.
Meanwhile, Ethereum continues to struggle, with $52.8 million in outflows last week, extending its negative streak. In contrast, Solana funds saw healthy inflows of $34.9 million, showcasing a more optimistic outlook for this altcoin. Overall, while the crypto market is experiencing a recovery, investor sentiment remains mixed, particularly as macroeconomic factors continue to influence market dynamics.