Investment in cryptocurrency-based products experienced a notable surge over the past week, marking the second consecutive week of positive flows following the recent downturn in the market. Data from CoinShares indicates that digital asset investment products attracted $932 million between May 13 and 17.
This influx was largely attributed to the U.S. Consumer Price Index (CPI) report, which suggested a moderation in inflationary pressures. Despite the increase in inflows, weekly trading volumes remained relatively subdued at $10.5 billion, a stark contrast to the $40 billion observed in March.
Read more: Ethereum Jumps 20%, Optimism High with ETF Buzz
An analyst at CoinShares highlighted that the majority of the inflows occurred in the latter three trading days of the week, amounting to 89% of the total flows. This trend underscores the view that Bitcoin prices have realigned with expectations surrounding interest rates.
Source: CoinShares
The CPI report released on May 15 revealed a 0.3% increase in inflation for April, following a 0.4% rise in March. Year-over-year, the CPI showed a 3.4% growth, driven by significant upticks in the energy and food sectors.
CoinShares Research previously noted that following the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States in January, factors influencing Bitcoin's price began to align with market expectations regarding interest rates.
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Grayscale's Bitcoin ETF experienced minor inflows amounting to $18 million over the week. Since its conversion in January, the fund has witnessed outflows totaling $16.6 billion. Regionally, Hong Kong and Canada saw outflows of $83 million and $17 million, respectively.
Altcoin Funds See Big Inflows, While Ether Faces Outflows
CoinShares reported that various altcoin funds experienced inflows over the past week. Solana, Chainlink, and Cardano saw net flows of $4.9 million, $3.7 million, and $1.9 million, respectively. In contrast, Ether funds faced outflows totaling $23 million.
Source: CoinShares
The pressure on Ether prices is attributed to uncertainty surrounding the Securities and Exchange Commission’s (SEC) decision on spot Ether ETFs, with the first deadline approaching on May 23.
Read more: BlackRock Predicts Bitcoin ETF Explosion
Analysts James Seyffart and Eric Balchunas, who initially expected the SEC to deny the approval, have revised their prediction. They now estimate a 75% chance of approval based on new information about the SEC’s stance.
See more: Cryptocurrency Prices and Market Cap
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