Cryptoasset investment products saw inflows for the second consecutive week in the second week of May, reaching a total of $942 million. This increase follows a period of significant outflows following the long-awaited Bitcoin exchange-traded fund (ETF) launch in January. However, while there was an inflow of $942 million in Bitcoin, outflows of $23.3 million were recorded in the largest altcoin, Ethereum (ETH). Here are the details
Grand entry into crypto asset products
Cryptoasset investment products saw inflows for the second consecutive week, totaling $942 million in the week ending May 17, 2024. cryptokoin.com As we reported, Bitcoin ETFs received approval in January. After January, BTC products experienced turmoil and saw significant outflows. Therefore, these consecutive entries are news that can raise the mood in the market.
The bulk of this week’s inflows came in the second half of the trading week, immediately following the release of the Consumer Price Index (CPI) report on Wednesday. The lower-than-expected CPI report, an important measure of inflation, eased concerns about rising interest rates. As Bitcoin’s price became increasingly tied to expectations for interest rates, this positive news triggered a buying frenzy and contributed to 89% of total weekly inflows.
Which products have how many entries?
Despite this positive sign, overall trading volumes remain weak compared to the beginning of this year. Total volume for the week was $10.5 billion, down significantly from $40 billion in March. Inflows are geographically concentrated, with the United States leading with $1.002 billion. Grayscale Investments, the world’s largest cryptocurrency asset manager, also experienced a small inflow of $18 million this week.
Grayscale saw inflows for the first time since the January ETF launch, followed by outflows of $16.6 billion. Switzerland and Germany also saw smaller inflows, amounting to $27.1 million and $4.2 million respectively. In Canada and Hong Kong, there was an outflow of $17 million and $83 million, respectively.
Critical figures in Ethereum and other altcoins
Bitcoin was the clear winner this week, attracting inflows of $942 million. This positive sentiment is further strengthened by the fact that there is almost no flow into short Bitcoin products; This indicates a bullish outlook among investors. There were also inflows in a wide variety of altcoins this week. Solana, Chainlink, and Cardano were among the top performers, seeing inflows of $4.9 million, $3.7 million, and $1.9 million, respectively. XRP and BNB remained neutral. Litecoin received an investment of 500 thousand dollars.
However, Ethereum continues to buck the trend. The world’s second-largest cryptocurrency by market cap has been hurt by ongoing outflows totaling $23 million this week. According to experts, the outflows are likely due to ongoing uncertainty regarding the approval of the spot-based Ethereum ETF by the Securities and Exchange Commission (SEC).
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