Digital Asset Investment Products See Inflows of $932 Million in Response to CPI Report
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, 2024
Bitcoin 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
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