Digital asset investment products experienced substantial inflows totaling $932 million for the second week.The inflows were an immediate reaction to the lower-than-expected Consumer Price Index (CPI) report released on Wednesday, CoinShares said in a Monday report. The report detailed that the latter three trading days of the week accounted for 89% of the total flows, indicating a clear correlation between Bitcoin prices and interest rate expectations.Despite the increase in inflows, trading volumes remained relatively low at $10.5 billion for the week, compared to $40 billion in March.
The United States dominated the regional inflows, with $1.002 billion entering the market last week.Interestingly, Grayscale, which had experienced significant outflows of $16.6 billion since the launch of the ETF in January, saw minor inflows totaling $18 million for the first time.Switzerland and Germany also witnessed minor inflows of $27 million and $4.2 million, respectively.However, Hong Kong and Canada experienced outflows amounting to $83 million and $17 million, respectively.According to CoinShares, digital asset investment products received as much as $932 million in inflows last week, mainly due to market expectations of interest rate cuts. Bitcoin inflows were $942 million. Ethereum outflows were $23 million. https://t.co/qOxsPMz0oY— Wu Blockchain (@WuBlockchain) May 20, 2024Bitcoin attracted $942 million in inflows, while there were virtually no flows into short Bitcoin, indicating a positive outlook among investors.Several altcoins also received notable inflows, with Solana, Chainlink, and Cardano leading the way with $4.9 million, $3.7 million, and $1.9 million, respectively.On the other hand, Ethereum continued to face bearish sentiment due to uncertainties surrounding the Securities and Exchange Commission’s (SEC) approval of a spot-based ETF, resulting in further outflows of $23 million.In contrast, blockchain equities experienced ongoing outflows, with only six out of the 20 weeks this year witnessing inflows.Year-to-date, these equities have seen a total outflow of $512 million, suggesting a cautious approach from investors in this sector.
Bitcoin ended the week on a positive note, closing at around $66,300, representing a 7.8% increase compared to the previous week’s closing value of approximately $61,500.The week saw relatively low volatility, with the majority of the price surge occurring on Wednesday, while the rest of the week remained stable.A significant factor contributing to last week’s upward price movement was the renewed demand for BTC Spot ETFs, Matteo Greco, a research analyst at digital asset investment firm Fineqia International, said in a recent note.After experiencing five weeks of low demand, resulting in around $1 billion in cumulative net outflows, BTC Spot ETFs witnessed approximately $950 million in net inflows.Grayscale’s ETF (GBTC), which transitioned from a trust to an ETF in January 2024, saw its first weekly net inflow.Trading volume for Bitcoin ETFs remained stable, with a cumulative trading volume of $262.6 billion since inception and recording $8.6 billion during the week.These figures maintain consistency with recent weeks, as daily trading volume ranged from $1.5 to $2 billion, following a period of exceptionally high trading activity in February and March.
