Bitcoin grabbed the lion’s share of total inflows last week with Ethereum experiencing its best week of inflows since March, reaching $69 million.
During the first week of June, the crypto asset investment products registered inflows totaling $2 billion thereby taking its five-week of inflows to over $4.3 billion. Moreover, the trading volumes across all crypto ETPs last week stood at a staggering $12.8 billion, surging by a massive 55% from the previous week.
CoinShares has observed inflows across nearly all providers, alongside a notable slowdown in outflows from incumbent providers. This shift in sentiment is due to weaker-than-expected macroeconomic data from the United States. Moreover, all eyes will be on the Fed rate cut decision this week as the US will release its CPI and PPI numbers for the month of May.
CoinShares noted that this favorable price action has driven total assets under management (AuM) to surpass the $100 billion mark for the first time since March of this year.
Bitcoin (BTC) remains the primary focus, with inflows totaling $1.97 billion for the week. In contrast, short-Bitcoin saw outflows for the third consecutive week, amounting to $5.3 million. Ethereum (ETH) experienced its best week of inflows since March, reaching $69 million. This surge is likely a reaction to the unexpected SEC decision to allow spot-based ETFs.
Bitcoin and Ethereum Hold Steady Ahead of Key Macro Data Release
Bitcoin and Ethereum prices didn’t make any major moves over the last weekend with open interest and trading volumes dropping following a $400 million leverage flush out on Friday. However, there’s enough chance that market volatility would return to the crypto market amid the CPI release ahead on Wednesday.
A record build-up of leverage in Bitcoin futures hit bulls hard as the market plummeted on Friday after the release of non-farm payrolls (NFP) data. The NFP figures exceeded expectations, with the US economy adding 275,000 jobs compared to the anticipated 185,000. As a result, Bitcoin experienced a sharp decline, dropping from $71,000 to $69,000. The jobs data has dampened the prospect of any immediate chances of rate cuts by the Fed.
However, QCP Capital believes that the Fed won’t hold the interest rates higher for a longer period of time. “We agree that this is a good opportunity to buy the dip as the markets will increasingly price in at least one Fed rate cut from here. It will be difficult for the U.S. to ignore as the rest of the world continues to cut rates,” QCP Capital said.
Last week, the European Central Bank and the Bank of Canada announced rate cuts thereby triggering the monetary easing cycle.
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