Amidst Bitcoin's trading range of $66,000-$67,000, institutional investors have shifted their attention to Bitcoin and selected altcoins following the release of the CPI data and anticipation of the SEC's decision on spot Ethereum ETF applications.
Inflows Reflect Market Sentiment
Coinshares' weekly cryptocurrency report highlights a substantial influx of $932 million into cryptocurrency investment products in the second week, primarily driven by the positive CPI data and expectations of an interest rate cut. Notably, 89% of these inflows occurred in the last three trading days of the week.
Grayscale, despite experiencing significant outflows totaling $16.6 billion since its ETF launch in January, witnessed modest inflows for the first time during the week.
Bitcoin Leads Inflows as Ethereum Faces Outflows Amidst ETF Concerns
Bitcoin emerged as the primary beneficiary of the inflows, attracting $942 million. Conversely, Ethereum faced outflows of $23.3 million, reflecting concerns over the potential rejection of a spot-based ETF by the SEC.
Among altcoins, Chainlink (LINK), Cardano (ADA), and Solana (SOL) saw notable inflows of $3.7 million, $1.9 million, and $4.9 million, respectively. These inflows suggest investors' diversified interest beyond Bitcoin, indicating positive sentiment towards selected altcoins.
In terms of regional fund inflows, the USA led with an influx of $1 billion, followed by Switzerland with $27.1 million. Conversely, Hong Kong experienced an inflow of $82.5 million, while Kamada recorded an outflow of $16.7 million.
Key Takeaways:
- Market Sentiment and Inflows: Positive CPI data and expectations of an interest rate cut drove significant inflows into cryptocurrency investment products.
- Bitcoin's Appeal: Bitcoin remains a favored asset among institutional investors, attracting substantial inflows.
- Altcoin Interest: Altcoins such as Chainlink, Cardano, and Solana garnered investor attention, indicating a diversified investment approach.
- Regional Variations: The USA and Switzerland witnessed notable inflows, contrasting with outflows from Hong Kong and Kamada.
Overall, the inflows into Bitcoin and selected altcoins reflect evolving market sentiment and institutional investors' strategic allocation strategies amidst ongoing market dynamics and regulatory developments.