CPI reports $932M inflows into crypto investment funds
Crypto-based investment products saw strong returns last week, marking the second consecutive week of positive inflows since the recent market crash.
According to CoinShares data, digital asset investment products raised $932 million between May 13 and 17, in sharp response to the US Consumer Price Index (CPI) report, which appears to indicate that inflation is on the mend. Despite the higher inflows, weekly volumes remained relatively low at $10.5 billion, a sharp contrast to March's $40 billion.
“Interestingly, the earnings were an immediate response to the lower-than-expected CPI report on Wednesday, about 89% of the total flows in the last 3 trading days of the week, which highlights that Bitcoin prices are eating into interest. Expectations.”
The May 15 CPI report showed inflation rose 0.3% in April, following a 0.4% increase in March. CPI rose 3.4% year-on-year, driven by strong increases in the energy and food sectors.
In a previous analysis, CoinShares Research noted that Bitcoin exchange-traded funds (ETFs) were approved in the United States in January after the spot.
The Greyscale Bitcoin ETF saw minimal inflows during the week, totaling $18 million. Since switching in January, the fund has seen $16.6 billion in withdrawals. Regionally, Hong Kong and Canada experienced costs of $83 million and $17 million, respectively.
According to CoinShares, a variety of altcoins including Solana (SOL), Chainlink (LINK), and Cardano (ADA) have been inflows over the past week, each seeing $4.9 million, $3.7 million, and $1.9 million, respectively. In contrast, Ether (ETH) funds saw $23 million in withdrawals.
Ether prices remain under pressure due to concerns about how the Securities and Exchange Commission (SEC) will rule on Ether ETFs. The commission's first deadline on crypto ETFs expires on May 23.
Two ETF analysts, James Seifert and Eric Balchunas, have revised their predictions regarding the SEC's approval of the Spot Ether ETF. While initially expecting a denial, analysts now believe there is a 75% chance of approval after hearing new information about the SEC's position.
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