44 C
Friday, June 14, 2024
HomeCryptocurrencyBitcoinBitcoin Notes $2B Inflows But Ethereum Steals The Spotlight

Bitcoin Notes $2B Inflows But Ethereum Steals The Spotlight

Coingape Staff

The digital asset investment landscape witnessed a significant upsurge as inflows into investment products totaled $2 billion last week. Bitcoin (BTC) led the flows with a whopping $1.97 billion inflows. However, Ethereum (ETH) also saw a significant spike, grabbing the spotlight.

Bitcoin & Ethereum Inflows Surge

This momentum of crypto fund inflows extends a five-week streak, bringing total inflows to $4.3 billion. Trading volumes in crypto Exchange-Traded Products (ETPs) surged to $12.8 billion. Moreover, it indicates a 55% increase from the previous week. Notably, inflows were observed across nearly all providers, while outflows from the ETPs continued to slow.

This shift in sentiment is attributed to weaker-than-expected macroeconomic data in the US. Hence, it has led to anticipations of earlier monetary policy rate cuts. Consequently, positive price actions boosted total assets under management (AuM) beyond the $100 billion mark for the first time since March.

Regionally, the United States dominated inflows, contributing $1.98 billion. This includes the third-largest daily inflow on record at the beginning of the week. The iShares Bitcoin ETF (IBIT) by BlackRock has now surpassed the Grayscale Bitcoin Trust, with $21 billion in AuM.

Moreover, Bitcoin remained the primary focus, receiving $1.97 billion in inflows over the week. Meanwhile, short-Bitcoin products faced outflows for the third consecutive week, totaling $5.3 million. It indicates a shift in market sentiment towards a bullish outlook on Bitcoin.

However, Ethereum also captured significant attention, experiencing its best week of inflows since March with a total of $69 million. This surge is likely a reaction to the SEC’s unexpected decision to approve 19-b4s for Spot Ethereum ETFs. Moreover, the positive response from investors underscores Ethereum’s growing appeal and the broader acceptance of its potential.

Altcoins saw relatively modest activity, with Fantom (FTM) and XRP standing out, according to CoinShares data. Fantom recorded inflows of $1.4 million, while XRP followed closely with $1.2 million. Furthermore, the speculations of a potential XRP ETF in the U.S. also catalyzed the recent surge in inflows.

Also Read: How Bitcoin Will Benefit From End Of US-Saudi Petrodollar Deal

CPI & PPI Data This Week

Crypto enthusiasts are closely monitoring key inflation data this week, with the U.S. Consumer Price Index (CPI) for May. The report is due on Wednesday, June 12. The CPI, along with the Core CPI, are vital indicators that reflect price changes and will provide a clear understanding of the current inflation scenario in the U.S.

Additionally, the U.S. Producer Price Index (PPI) and the Core PPI are significant metrics for evaluating inflation trends in the country. These figures for May are expected to be released on Thursday, June 13, providing further insights.

The release of these inflation metrics will be critical in shaping the Federal Reserve’s future interest rate decisions. Following last week’s mixed U.S. job data, the upcoming CPI and PPI reports are crucial for Bitcoin and altcoins investors. It will set the stage for Fed’s next move.

Recently, the EU Central Bank cut its interest rates by 0.25%, which spread optimism regarding a potential Fed rate cut, which drove the Bitcoin price higher. However, the Federal Reserve is not expected to introduce a rate cut, according to current market sentiment. Nonetheless, the upcoming press conference suggests that the Fed could take sharp steps on controlling inflation.

Also Read: SOL/BTC Price Prediction: Can Solana Price Reach $200 While Bitcoin Slides?

✓ Share:

CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

➜ Source


Most Popular

Recent Comments