Bitcoin News Today: Bitcoin ETFs Draw $352M Inflow as XRP Gains Institutional Momentum

Bitcoin ETFs attracted $352 million in inflows last week, representing about half of the $716 million total inflows into crypto funds, according to CoinShares. XRP funds came in as the second-largest category, pulling in $244 million, fueled in part by the recent launch of a new leveraged ETF as reported. Meanwhile, short-Bitcoin products saw $18.7 million in outflows-the largest since March 2025-suggesting bearish sentiment may have bottomed out.

The strong inflows into Bitcoin ETFs indicate renewed investor confidence amid a price rebound, with Bitcoin trading at $90,259 as of the article's writing. The 1% daily gain and 6.6% weekly rise reinforce a potential shift in market sentiment, with ETP investors signaling a bottoming phase for the current pessimism. In contrast, short-Bitcoin products continue to lose traction, which could reduce downward pressure on the asset.

The broader crypto fund landscape has been on a recovery path, with total assets under management rising 7.9% from November lows to $180 billion, although it remains below the all-time high of $264 billion according to CoinShares data. This rebound was tempered by minor outflows on Thursday and Friday, which CoinShares' head of research linked to U.S. macroeconomic data hinting at lingering inflationary pressures. The week's figures also highlight the growing institutional interest in XRP, which has drawn nearly $900 million in cumulative inflows across several weeks, a sign of regulatory optimism and strategic allocation shifts.

How Markets Reacted

BlackRock's Bitcoin ETF, the iShares Bitcoin Trust (IBIT), has faced a prolonged outflow cycle, with over $2.7 billion withdrawn over five weeks-the heaviest redemption cycle since its launch in early 2024. The fund is on track for a sixth consecutive week of outflows, which CoinDesk notes reflects a broader shift in crypto positioning following October's market downturn. Despite Bitcoin's recovery to the low $92,000s, institutional flows remain negative, suggesting a cooling in fresh capital rather than a structural exit.

Bitcoin's rebound has not translated into a strong institutional inflow trend, with the fund seeing another $113 million in redemptions on Thursday alone. The withdrawals mirror broader market behavior, as fund managers trim exposure ahead of year-end bonus season and amid macroeconomic uncertainty. However, analysts argue this is more about directional positioning than short-term price action. The fund's decline from a $71 billion vehicle during Bitcoin's peak to its current state reflects the reversal in institutional sentiment.

What This Means for Investors

The recent XRP ETF inflows contrast sharply with the struggles of Bitcoin and Ethereum funds. XRP attracted nearly $900 million in institutional inflows last week, while Bitcoin and Ethereum saw net outflows. This shift suggests a strategic reallocation of capital within the crypto space, with altcoins gaining traction as traditional large-cap assets face continued institutional scrutiny according to market analysis.

The XRP ETF's performance was further highlighted by a $89.65 million purchase, bringing total net assets under management to $723.05 million. Prominent crypto influencer Amonyx described the development as bullish, citing the ETF's role in providing regulated access and simplifying institutional adoption. Bitwise CIO Matt Hougan also emphasized the timing of the XRP ETF launch, noting that regulatory clarity post-SEC lawsuit resolution had opened new opportunities for institutional exposure.

For Bitcoin investors, the mixed signals are clear. While ETF inflows point to growing confidence, BlackRock's IBIT struggles reflect the challenges of maintaining institutional exposure in a volatile market according to market analysis. The Fed's upcoming rate decision on December 10 could influence further movement, with prediction markets showing a 94% probability of a 25-basis-point cut. If the cut materializes, it could provide a liquidity boost to crypto assets, including Bitcoin and XRP as analysts suggest.

The broader macroeconomic context also supports a cautious outlook. The U.S. PCE report showed inflation at 2.8% year-over-year, below expectations and slightly cooler than August's 2.9%. While this reading aligns with the Fed's preferred inflation gauge, it still remains above the 2% target. Analysts believe any further cooling could accelerate a policy easing cycle, which historically has been positive for risk assets like Bitcoin.

Investors are advised to monitor both the Fed's rate decision and the continued flow of capital into XRP ETFs as key indicators of market direction. While Bitcoin's ETF inflows signal optimism, the institutional withdrawal from BlackRock's product highlights the complexity of current investor sentiment. The combination of macroeconomic data, regulatory clarity, and institutional strategy will likely determine the next phase of the market's evolution.