Bitcoin Notes $2 Billion Inflows, But Ethereum Steals the Show

The digital asset investment landscape has seen a significant resurgence, with inflows into investment products totaling $2 billion last week. Bitcoin (BTC) dominated the flows with huge inflows of $1.97 billion. However, Ethereum (ETH) also saw a significant rise, attracting attention.

Increase in Bitcoin and Ethereum flows

This surge in crypto fund inflows spans a five-week streak, bringing total inflows to $4.3 billion. Trading volumes on crypto exchange-traded products (ETPs) jumped to $12.8 billion. Additionally, this indicates a 55% increase from the previous week. In particular, inflows were seen from almost all suppliers, while outflows from FTEs continued to slow.

This change in sentiment is attributed to weaker than expected results. macroeconomic data

in the USA. This therefore led to expectations of earlier cuts in monetary rates. Consequently, the positive price action took 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 influx on record earlier this week. BlackRock’s iShares Bitcoin ETF (IBIT) has now surpassed the Grayscale Bitcoin Trust, with $21 billion in assets under management.

Additionally, Bitcoin remained the top priority, receiving $1.97 billion in inflows during the week. Meanwhile, short-term Bitcoin products faced capital outflows for the third consecutive week, totaling $5.3 million. This indicates a shift in market sentiment towards a bullish outlook on Bitcoin.

However, Ethereum also attracted considerable attention, seeing its best week of inflows since March with a total of $69 million. This rise is likely a reaction to the SEC’s unexpected decision to approve 19-b4s for Spot Ethereum ETFs. Additionally, the positive response from investors highlights Ethereum’s growing appeal and wider acceptance of its potential.

Altcoins saw relatively modest activity, with Fantom (FTM) and XRP standing out, according to CoinShares data. Fantom saw inflows of $1.4 million, while XRP followed closely with $1.2 million. Additionally, speculation over a potential XRP ETF in the United States has also catalyzed the recent surge in capital inflows.

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CPI and PPI data this week

Crypto enthusiasts are closely watching key inflation data this week, with the US Consumer Price Index (CPI) for May. The report is expected on Wednesday June 12. The CPI, along with the core CPI, are essential indicators that reflect price changes and will provide a clear understanding of the current inflation scenario in the United States.

Additionally, the U.S. Producer Price Index (PPI) and Core PPI are important measures for assessing inflation trends in the country. These figures for May are expected to be released on Thursday June 13, providing additional information.

The release of these inflation measures will be critical in shaping the Federal Reserve’s future interest rate decisions. Following last week’s mixed US employment data, the upcoming CPI and PPI reports are crucial for Bitcoin and altcoin investors. This will set the stage for the Fed’s next decision.

Recently, the EU Central Bank cut interest rates by 0.25%, sparking optimism about a possible Fed rate cut, pushing the Bitcoin Price upper. However, the Federal Reserve is not expected to introduce a rate cut, based on current market sentiment. Nonetheless, the upcoming press conference suggests that the Fed may take drastic action to control inflation.

Read also: SOL/BTC Price Prediction: Can Solana Price Reach $200 While Bitcoin Slips?

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