Digital asset weekly inflows jump over 600% following response to CPI report
|- Coinshares reported that digital assets saw net inflows of $932 million last week after CPI data release.
- Hong Kong witnesses $82.5 million outflows, suggesting crypto ETFs in the region may not be worth the hype.
- Global ETF volume slightly increased last week but was still miles below volumes seen in March and April.
Coinshares weekly report of digital asset flows shows that crypto assets witnessed more than a 600% increase in net inflows last week after US Consumer Price Index (CPI) saw a softer-than-expected inflation increase.
Also read: Ethereum sees a 16% spike as Bloomberg analysts surprisingly increase approval odds to 75%
Digital assets inflows near $1 billion
Digital asset funds recorded consecutive inflows last week with $932 million in net inflows i.e., a 619% increase from last week's $130 million inflows, according to data from Coinshares.
Generally, increased fund inflows in an asset signify investor confidence and a potential price increase.
The increased inflows were triggered after the US reported on Wednesday that CPI only increased by a softer-than-expected 0.3%, indicating progress towards the Federal Reserve's 2% target. 89% of the reported total flows came in the last three days of the week after the CPI data release.
Read more: Digital asset funds record weekly inflows for first time in five weeks
Bitcoin accounted for a large chunk of total flows, with over $942 million in inflows. Solana and Chainlink also recorded inflows of $4.9 million and $3.7 million, respectively. Ethereum, on the other hand, recorded outflows of nearly $23 million following bearish sentiments last week regarding spot ETH ETF approval.
However, things are turning positive for the digital asset this week following rumors that the SEC is set to approve the ETFs as the May 23 deadline approaches.
By region, the US dominated with more than $1 billion in inflows. Canada continued seeing outflows for the second consecutive week, with about $17 million in outflows. Hong Kong saw outflows of $82.5 million, indicating the debut of Bitcoin and Ethereum ETFs in the region may not be worth the hype.
Also read: Week Ahead: Ethereum and DeFi to come under spotlight this week
Total volumes across global ETFs also slightly increased from $8 billion to $10.5 billion last week. However, it's still miles below the $40 billion volume seen in March.
With the market opening the week on a positive note on Monday, global ETFs may record even more increased inflows.
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