Crypto-based investment products experienced a notable increase in investments during the previous week, marking the second consecutive week of positive growth following the recent market downturn.
According to data from CoinShares, digital asset investment products accumulated a total of $932 million between May 13 and 17. This surge in investments was largely influenced by the U.S. Consumer Price Index (CPI) report, which indicated a moderation in inflationary pressures. Despite the increase in investments, weekly volumes remained relatively low at $10.5 billion, a significant contrast to the $40 billion observed in March.
The CPI report released on May 15 revealed a 0.3% rise in inflation for 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 highlighted that the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States in January resulted in a realignment of factors influencing Bitcoin’s price with market expectations surrounding interest rates.
Grayscale’s Bitcoin ETF experienced minor inflows totaling $18 million over the week. Since its conversion in January, the fund has witnessed outflows amounting to $16.6 billion. Hong Kong and Canada saw outflows of $83 million and $17 million, respectively.
CoinShares reported that various altcoin funds, including Solana (SOL), Chainlink (LINK), and Cardano (ADA), saw inflows of $4.9 million, $3.7 million, and $1.9 million, respectively, during the previous week. On the other hand, Ether (ETH) funds experienced outflows of $23 million.
Concerns regarding the Securities and Exchange Commission’s (SEC) decision on spot Ether ETFs have put pressure on Ether prices. The Commission’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 SEC’s approval of spot Ether ETFs. Initially expecting a denial, the analysts now believe there is a 75% chance of approval after receiving new information about the SEC’s stance.
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