Crypto investment inflows soar to $932 million after favorable CPI report Crypto investment inflows soar to $932 million after favorable CPI report
Grayscale's GBTC sees a rare week of inflow, while Ethereum crypto products continue their bearish run.
2 min read
Updated: May. 20, 2024 at 3:46 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Digital asset investment products inflows jumped by 616% week-on-week to $932 million last week, according to CoinShares’ weekly report.
This marks the second consecutive week of inflows this month and a return to the impressive numbers recorded during the early period of this year.
James Butterfill, CoinShares’ head of research, explained that the substantial inflows were “an immediate response to the lower-than-expected CPI (Consumer Price Index) report.” He added:
“The latter 3 trading days of the week [made] up 89% of the total flows, highlighting our view that Bitcoin prices have recoupled to interest rate expectations.”
However, trading volumes remained subdued despite the significant flows. Butterfill wrote:
“Despite the pickup in inflows, volumes were only $10.5 billion for the week in comparison to $40 billion in March.”
Grayscale sees rare inflow in dominant US
The CoinShares report showed that spot Bitcoin exchange-traded funds (ETFs) in the US continued with their impressive numbers, propelling inflows in the country to more than $1 billion last week.
Interestingly, Grayscale’s Bitcoin ETF GBTC saw a rare week of inflow, amounting to $18 million during the reporting period.
Since the US Securities and Exchange Commission (SEC) approved the ETFs for trading in January, GBTC has recorded substantial outflows totaling more than $16 billion from its “expensive” product as investors exited to cheaper rival options like BlackRock’s IBIT and Fidelity’s FBTC.
Meanwhile, the newly launched ETFs in Hong Kong are not drawing investors’ interest as anticipated. According to CoinShares data, approximately $83 million were withdrawn from crypto-related investments in the City-State.
Investors dump Ethereum
Last week, Ethereum-based digital asset products recorded their second consecutive week of outflows, totaling $23 million. This brings the cumulative outflows from ETH this month to $47 million.
Butterfill explained that these outflows were caused by the bearish sentiments surrounding the possible approval of a spot Ethereum ETF product in the US. The SEC is expected to decide on the pending Ethereum ETF applications from VanEck and ARK Invest by May 23 and 24.
However, industry experts generally agree that the financial regulator’s taciturn stance toward the digital asset makes it unlikely to approve the product.
Meanwhile, investors continued to show interest in other altcoin investment options. Solana, Chainlink, and Cardano saw inflows totaling $4.9 million, $3.7 million, and $1.9 million, respectively.
Mentioned in this article
Bitcoin 
Ethereum 
Solana 
Cardano 
Chainlink 
Grayscale Investments 
BlackRock 
Fidelity Investments 
CoinShares 
Grayscale Bitcoin Trust iShares Bitcoin Trust 
Fidelity Wise Origin Bitcoin Trust Author 
Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Ethereum
$3,304.78
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Solana
$242.963
Solana is a high-performance blockchain platform that utilizes a unique consensus algorithm called “Proof of History” to achieve fast transaction speeds and low fees.
Cardano
$0.79844
Cardano is a decentralized public blockchain and cryptocurrency project and is fully open source.
Chainlink
$15.1057
Chainlink is a decentralized oracle network that connects smart contracts on the blockchain to real-world data.
Grayscale Investments
Established in 2013 by Digital Currency Group, Grayscale Investments is a trusted authority on digital currency investing and cryptocurrency asset management.
BlackRock
BlackRock, synonymous with global asset management, is an American multinational investment management corporation based in New York City.
Fidelity Investments
Fidelity Investments Inc., commonly referred to as Fidelity, is a multinational financial services corporation based in Boston, Massachusetts.
The Grayscale Bitcoin Trust (GBTC) is a digital currency investment product that provides investors with access to Bitcoin through traditional investment channels.
The BlackRock Bitcoin ETF, known as the iShares Bitcoin Trust (IBIT), is an investment fund that provides regulated exposure to Bitcoin for investors.
The Fidelity Wise Origin Bitcoin Trust (FBTC) is a spot Bitcoin ETF that offers investors exposure to the price of Bitcoin.