Digital asset investment products inflows jumped by 616% week-on-week to $932 million last week, according to CoinShares’ weekly report.This marks the second consecutive week of inflows this month and a return to the impressive numbers recorded during the early period of this year.James Butterfill, CoinShares’ head of research, explained that the substantial inflows were “an immediate response to the lower-than-expected CPI (Consumer Price Index) report.” He added:“The latter 3 trading days of the week [made] up 89% of the total flows, highlighting our view that Bitcoin prices have recoupled to interest rate expectations.”However, trading volumes remained subdued despite the significant flows. Butterfill wrote:“Despite the pickup in inflows, volumes were only $10.5 billion for the week in comparison to $40 billion in March.”The CoinShares report showed that spot Bitcoin exchange-traded funds (ETFs) in the US continued with their impressive numbers, propelling inflows in the country to more than $1 billion last week.Interestingly, Grayscale’s Bitcoin ETF GBTC saw a rare week of inflow, amounting to $18 million during the reporting period.Since the US Securities and Exchange Commission (SEC) approved the ETFs for trading in January, GBTC has recorded substantial outflows totaling more than $16 billion from its “expensive” product as investors exited to cheaper rival options like BlackRock’s IBIT and Fidelity’s FBTC.Meanwhile, the newly launched ETFs in Hong Kong are not drawing investors’ interest as anticipated. According to CoinShares data, approximately $83 million were withdrawn from crypto-related investments in the City-State.Last week, Ethereum-based digital asset products recorded their second consecutive week of outflows, totaling $23 million. This brings the cumulative outflows from ETH this month to $47 million.Butterfill explained that these outflows were caused by the bearish sentiments surrounding the possible approval of a spot Ethereum ETF product in the US. The SEC is expected to decide on the pending Ethereum ETF applications from VanEck and ARK Invest by May 23 and 24.However, industry experts generally agree that the financial regulator’s taciturn stance toward the digital asset makes it unlikely to approve the product.Meanwhile, investors continued to show interest in other altcoin investment options. Solana, Chainlink, and Cardano saw inflows totaling $4.9 million, $3.7 million, and $1.9 million, respectively.Oluwapelumi values Bitcoin’s potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.Also known as “Akiba,” Liam is a reporter, editor and podcast producer at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change. Must-read crypto news & insights. Delivered daily.The Decentralized Fund inititaive is designed to support Polkadot-focused organizations with funding.US approval of Ethereum ETFs turned investors’ sentiment in ETH positively.Hong Kong’s financial regulator SFC has licensed only 2 crypto exchanges in the region.SEC’s regulatory crackdown influenced ETF issuers to exclude staking from proposals amid compliance concerns.Miller argued that the flagship crypto remains vastly undervalued and predicts a major shift in global capital governance.The report highlights significant gaps in law enforcement’s ability to track and recover illicit digital assets moved via privacy coins, layer-2 networks, and crypto mixers. DeFi Technologies recently adopted BItcoin as its primary treasury reserve asset.Japanese firm Metaplanet saw its stock surge 10% after its most recent Bitcoin acquisition.CryptoSlate’s latest market report dives deep into the effects corporate Bitcoin purchases have on the market.Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.
