Digital Asset Investment Products See $932M Inflows Amid Favorable CPI Report

Key Points:

• Digital asset investment products had $932 million in inflows last week, spurred by a favorable CPI report.
• The U.S. led with $1.002 billion in inflows, while Bitcoin saw $942 million, but Ethereum faced $23 million in outflows.
• Blockchain equities have seen $512 million in year-to-date outflows, indicating persistent bearish sentiment.

Digital asset investment products experienced inflows for the second consecutive week, totaling $932 million.

Digital Asset Investment Products InflowSurge to $932 Million

However, trading volumes of digital asset investment products remained relatively low at $10.5 billion for the week, compared to $40 billion in March. This recent surge in inflows was largely driven by a lower-than-expected Consumer Price Index (CPI) report on Wednesday, with the final three trading days of the week accounting for 89% of the total inflows. This trend underscores the recoupling of Bitcoin prices with interest rate expectations.

In terms of regional performance, the United States led the inflows, amassing $1.002 billion last week. Notably, Grayscale, which has experienced $16.6 billion in outflows since the January ETF launch, reported minor inflows of $18 million. Switzerland and Germany also saw modest inflows of $27 million and $4.2 million, respectively. Conversely, Hong Kong and Canada faced outflows of $83 million and $17 million, respectively.

Bitcoin Outshines Ethereum, Blockchain Equities Continue to Struggle

Bitcoin attracted significant attention with $942 million in inflows, and there were virtually no investments in short Bitcoin products, indicating a bullish sentiment among investors. Several altcoins also witnessed positive inflows, with Solana receiving $4.9 million, Chainlink $3.7 million, and Cardano $1.9 million. In contrast, Ethereum continued to suffer, with $23 million in outflows, reflecting investor pessimism regarding the potential approval of a spot-based ETF by the SEC.

Blockchain equities continued their struggle, marking outflows in 14 out of the 20 weeks this year. Year-to-date, these equities have seen a total outflow of $512 million, indicating persistent bearish sentiment in the sector.