Crypto asset investment products experienced a notable $932 million inflow during the second week. Despite this surge, the overall trading volume for the week remained relatively low at $10.5 billion compared to $40 billion back in March. A key trigger for these inflows was the lower-than-expected CPI report released on Wednesday, which accounted for 89% of the total inflows during the last three trading days of the week. This development underscores that Bitcoin prices are again becoming sensitive to interest rate expectations.
Where Are the Regional Funds Going?
In a regional breakdown, the United States led with $1.002 million in inflows last week. Grayscale, which has faced $16.6 billion in outflows since the ETF launch in January, saw a small but significant inflow of $18 million for the first time. Meanwhile, Switzerland and Germany recorded smaller inflows of $27 million and $4.2 million, respectively. Conversely, Hong Kong and Canada experienced outflows amounting to $83 million and $17 million, respectively.
Institutional Interest in Bitcoin and Altcoins on the Rise
Bitcoin received a substantial $942 million inflow, while short-focused Bitcoin saw negligible inflows, suggesting a positive investor sentiment. Other altcoins such as Solana, Chainlink, and Cardano also attracted inflows of $4.9 million, $3.7 million, and $1.9 million, respectively. This indicates a diversified interest among institutional investors.
Noteworthy Observations
– The US leads in crypto inflows with $1.002 million.
– Bitcoin’s significant inflow reflects a positive market sentiment.
– Swiss and German markets show modest inflows, while Hong Kong and Canada face outflows.
– Ethereum continues to see outflows due to ETF approval uncertainties.
Conclusion
Ethereum, in contrast, continued to experience outflows totaling $23 million this week, attributed to uncertainties surrounding the approval of a spot-based ETF by the SEC. Blockchain stocks also faced outflows, with only six weeks of inflows out of 20 this year, amounting to $512 million in year-to-date outflows. This trend highlights the nuanced investor behavior and varying regional impacts on the crypto market.