Solana

Bitcoin ETF

Crypto-based investment products saw a significant inflow over the previous week, marking the second consecutive week of positive flows since the recent market downturn.&nbsp;
According to CoinShares data, digital asset investment products amassed $932 million between May 13 and 17, driven by an immediate response to the U.S. Consumer Price Index (CPI) report, which seemed to show that inflationary pressures were moderating again. Despite higher nflows, weekly volumes remained relatively low at $10.5 billion, a sharp contrast to the $40 billion observed in March. 
<blockquote data-ct-non-breakable="true">
 “Interestingly, the inflows were an immediate response to the lower-than-expected CPI report on Wednesday, with the latter 3 trading days of the week making up 89% of the total flows, highlighting our view that Bitcoin prices have recoupled to interest rate expectations.”
</blockquote>
The May 15 CPI report&nbsp;<a href="https://www.bls.gov/news.release/cpi.htm" target="_blank" rel="noopener nofollow">revealed</a> that inflation rose by 0.3% in April, following a 0.4% increase in March. The CPI grew by 3.4% year over year, driven by significant increases in the energy and food sectors. 
In a previous analysis, CoinShares Research noted that after spot Bitcoin exchange-traded funds (ETFs) were approved in the United States in January, factors influencing Bitcoin’s price <a href="https://blog.coinshares.com/bitcoins-price-dynamics-federal-reserve-policies-and-economic-shifts-in-focus-1c5bf612de67" target="_blank" rel="noopener nofollow">re-aligned with market expectations</a> around interest rates. 
Grayscale’s Bitcoin ETF saw minor inflows over the week, totaling $18 million. Since its conversion in January, the fund has witnessed outflows of $16.6 billion. Regionally, Hong Kong and Canada experienced outflows of $83 million and $17 million, respectively.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-05/a8fbfa0f-6b2a-49bf-993f-08a3add8f421.png">
</figure>
According to CoinShares, a wide range of altcoin funds saw inflows over the previous week, including Solana (<a href="https://cointelegraph.com/solana-price-index">SOL</a>), Chainlink (<a href="https://cointelegraph.com/chainlink-price-index">LINK</a>) and Cardano (<a href="https://cointelegraph.com/ada-price-index">ADA</a>), each seeing net flows of $4.9 million, $3.7 million and $1.9 million, respectively. Conversely, Ether (<a href="https://cointelegraph.com/ethereum-price">ETH</a>) funds saw outflows of $23 million. 
Ether prices are still under pressure due to concerns about over how the Securities and Exchange Commission (SEC) will decide on spot Ether ETFs. The Commission’s first deadline over the crypto ETF is set to expire on May 23. 
Two ETF analysts, James Seyffart and Eric Balchunas, have <a href="https://cointelegraph.com/news/sec-reconsidering-spot-ether-etf-denial-analysts">revised their prediction</a> regarding the SEC’s approval of spot Ether ETFs. Initially expecting a denial, the analysts now believe there is a 75% chance of approval after hearing new information about the SEC’s stance.
Magazine: <a href="https://cointelegraph.com/magazine/real-risks-ethena-stablecoin-model-not-ones-you-think/">The real risks to Ethena’s stablecoin model (are not the ones you think)</a>

CPI report spurs $932M inflows into crypto investment funds

Cointelegraph

Other articles published on May 20, 2024

283M XRP moved amid Ripple’s Q1 report, what are whales doing?

Riding the Bull: SOL, GRT, AR & FTM—Cryptos Set to Soar in the Near Future

3 Memecoins to Watch for Major Gains

UK High Court Judge rules against Craig Wright over Bitcoin copyright claims

Bitcoin Stays Strong, Ethereum Whales Buy

Ethereum SEC Coin (ETHSEC) to Skyrocket 14,000% as KuCoin Listing Announced, While Shiba Inu and ...

Join our free newsletter for daily crypto updates!