Bitcoin Investment Products See Inflows First Time In Five Weeks, Upside Confirmed?

In what seems to be a major turnaround, the cryptocurrency investment products recorded inflows for the very first time over the past five weeks. Last week, the crypto investment products clocked $130 million in net inflows. While the Bitcoin investment products saw net inflows of $144 million.

Bitcoin ETF Inflows Resume

As reported, the U.S. Bitcoin ETFs recorded net inflows of $116 Million for the last week despite the continuous GBTC outflows. As the U.S. macros give uncertain signals, investors have been waiting on the sidelines in recent weeks.

Following a record week of inflows, Hong Kong experienced just $19 million in inflows, indicating that most of the capital in the first-week post Bitcoin ETF launches was seed capital. Well, the issuers of Hong Kong Bitcoin ETFs are now working to rope in wealthy Chinese investors which might lead to strong capital inflows.

In terms of regional activity, the US led with inflows totaling $135 million, while Grayscale observed its lowest weekly outflows since January, amounting to $171 million. Switzerland recorded inflows of $14 million.

Meanwhile, Canada and Germany continued to see outflows amounting to $20 million and $15 million, respectively, bringing their year-to-date outflows to a combined $660 million, reported CoinShares.

ETP volumes decreased to $8 billion for the week, compared to the $17 billion average in April. This decline suggests reduced participation from ETP investors in the crypto ecosystem, representing 22% of total volumes on global trusted exchanges, down from 31% last month.

Bitcoin witnessed $144 million in inflows, marking a recovery after a weak month. Short-Bitcoin ETPs experienced outflows totaling $5.1 million, continuing the trend of outflows over the last 8 weeks, totaling $18 million.

On the other hand, the chances of spot Ethereum ETF approval by the month’s end, in the US, seem to be bleak. The conversations between US regulators and ETF issuers have been very low in recent times. Amid this uncertainty, the Ethereum price faced selling pressure earlier today dropping under $2,900.

All Eyes on US CPI Data

This week, the market awaits crucial insights with the release of U.S. inflation data, starting with the Producer Price Index (PPI) on Tuesday, followed by the Consumer Price Index (CPI) on Wednesday.

In anticipation of these inflation reports, the CME’s FedWatch tool predicts a 24.6% probability of a rate cut at the July Federal Open Market Committee (FOMC) meeting and a 48.6% chance at the September meeting. Interest traders project a 96.5% likelihood of unchanged rates at the June meeting.

Ahead of the release of PPI and CPI data, the Bitcoin price has bounced back 2.5% and currently trading at $62,639.