Sunday, June 23, 2024

Crypto Investment Funds See $932M Influx After CPI Report.

It was the second week in a row that there was a positive flow into crypto-based investment products following the recent market collapse. The prior week saw a notable inflow.

The U.S. Consumer Price Index (CPI) report, which appeared to indicate that inflationary pressures were once again reducing, sparked an immediate response that led to the accumulation of $932 million in digital asset investment products between May 13 and May 17, according to CoinShares statistics. Weekly volumes were at $10.5 billion, which was relatively modest despite greater inflows. This is in stark contrast to the $40 billion seen in March.

The last three trading days of the week accounted for 89% of the total inflows, which is interesting since it indicates that the inflows were a direct reaction to the lower-than-expected CPI news on Wednesday. This supports our belief that the price of Bitcoin has recoupled with interest rate expectations.

Inflation increased by 0.3% in April after increasing by 0.4% in March, according to the CPI report released on May 15. The CPI increased by 3.4% annually, mostly due to notable gains in the food and energy industries.

In an earlier investigation, CoinShares Research observed that factors affecting the price of Bitcoin realigned with market expectations surrounding interest rates following the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States in January.

Over the course of the week, Grayscale’s Bitcoin ETF experienced slight inflows totaling $18 million. $16.6 billion has been taken out of the fund since its conversion in January. In the region, there were outflows of $17 million and $83 million from Canada and Hong Kong, respectively.

Numerous cryptocurrency funds experienced inflows during the previous week, according to CoinShares. These funds included Solana SOL $182, Chainlink LINK $16.80, and Cardano ADA $0.49, with net flows of $4.9 million, $3.7 million, and $1.9 million, respectively. On the other hand, $23 million was taken out of the $3,762 ETH funds.

The Securities and Exchange Commission’s (SEC) decision-making process regarding spot Ether ETFs continues to be a source of pressure on ether prices. May 23 is the deadline that the Commission has set for the crypto ETF.

James Seyffart and Eric Balchunas, two ETF analysts, have updated their forecast on the SEC’s acceptance of spot Ether ETFs. After learning additional details regarding the SEC’s position, the analysts—who had previously anticipated a rejection—now think there is a 75% likelihood of passing.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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