Crypto-based investment products experienced a notable increase in investments during the previous week, marking the second consecutive week of positive flows since the recent decline in the market. According to data from CoinShares, these digital asset investment products gathered $932 million between May 13 and 17. This surge was primarily driven by the U.S. Consumer Price Index (CPI) report, which indicated a moderation in inflationary pressures. Despite the increase in investments, the weekly trading volumes remained relatively low at $10.5 billion, significantly lower than the $40 billion recorded in March.
The CPI report released on May 15 revealed that inflation had risen by 0.3% in April, following a 0.4% increase in March. The year-over-year CPI growth of 3.4% was primarily driven by significant increases in the energy and food sectors.
CoinShares Research had previously noted that the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States in January had aligned Bitcoin’s price with market expectations regarding interest rates.
Grayscale’s Bitcoin ETF witnessed minor inflows amounting to $18 million during the week. However, since its conversion in January, the fund has experienced outflows totaling $16.6 billion. Hong Kong and Canada also saw outflows of $83 million and $17 million, respectively.
CoinShares reported inflows into various altcoin funds during the previous week, including Solana (SOL), Chainlink (LINK), and Cardano (ADA), which saw net flows of $4.9 million, $3.7 million, and $1.9 million, respectively. On the other hand, Ether (ETH) funds experienced outflows of $23 million.
The price of Ether is still under pressure due to concerns about the Securities and Exchange Commission’s (SEC) decision regarding spot Ether ETFs. The SEC’s first deadline for the crypto ETF is set to expire on May 23. ETF analysts James Seyffart and Eric Balchunas have revised their prediction regarding the approval of spot Ether ETFs by the SEC. Initially expecting a denial, they now believe there is a 75% chance of approval after receiving new information about the SEC’s stance.
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