Key Points
- CoinShares’ James Butterfill reveals that digital asset investment products saw inflows of $932 million.
- The inflows mirrored an immediate response to the CPI data.
CoinShares’ head of research, James Butterfill, revealed in a blog post that digital asset investment products saw inflows for the second week, of $932 million.
However, despite the pickup in inflows that the crypto products saw, volumes were only $10.5 billion for the week, compared to $40 billion in March.
CoinShares notes that the inflows were an immediate response to the less hot CPI report that was released last week, on May 15. The data showed an eased inflation for April of 3.4% which was in line with the expectations of economists.
The notes also reveal that the latter three trading days of the past week made up 89% of the total flows, highlighting the firm’s view on the fact that Bitcoin’s prices have decoupled to interest rate expectations.
Crypto investment products inflows detailed
CoinShares notes that regionally, the US dominated and saw $1 billion in inflows during the past week.
Grayscale which recorded $16.6 billion of outflows since the January launch of Bitcoin ETFs, saw minor inflows for the first time of $18 million.
Switzerland and Germany saw inflows of $27 million and $4.2 million respectively. Hong Kong and Canada saw outflows of $83 million and $17 million respectively.
Bitcoin saw $942 million of inflows with virtually no flows into short Bitcoin. This means that there is a positive outlook from investors.
CoinShares also detailed that there was a wide range of altcoins that recorded inflows, and the most significant ones are Solana ($4.9 million), Chainlink ($3.7 million), and Cardano ($1.9 million).
Ethereum is still surrounded by bearish sentiments, especially due to the very small chance that the SEC could decide to approve the Ethereum ETFs during this week.
The ETH products saw outflows of $23 million.
The blog post concludes by revealing that blockchain equities continue to suffer outflows, and only 6 weeks of the 20 weeks this year saw inflows. Year to date, they recorded $512 million in outflows so far.
This week, the crypto industry awaits the SEC’s decision regarding a potential approval for Ethereum ETFs for VanEck’s and ARK’s filings, by May 23 and May 24, respectively.