Digital asset investment products surged for the second consecutive week, reaching a total of $932 million. Despite the increased inflows, trading volume this week was just $10.5 billion, well below the $40 billion recorded in March.
Notably, the main catalyst for the inflows was the unexpected CPI report released on Wednesday. According to the latest edition of CoinShares' weekly digital asset fund flows report, 89% of total fund flows occurred in the last three trading days of the week, essentially signaling that BTC prices have rebounded on interest rate expectations.
No inflow to short Bitcoin
It turns out that Bitcoin investors are not actively betting on the price to fall, with only $600,000 inflows into BTC short investment products, indicating a bullish outlook among market participants. Meanwhile, Bitcoin received $942 million in weekly inflows, according to a report from CoinShares.
Various altcoins also saw inflows, with Solana, Chainlink, and Cardano seeing notable inflows, reaching $4.9 million, $3.7 million, and $1.9 million, respectively. Litecoin-specific investment products also saw modest inflows of $500,000 during the same period.
Ethereum appears to have bucked the general trend, facing negative sentiment due to concerns over the U.S. Securities and Exchange Commission's (SEC) approval of spot-based ETFs, resulting in $23 million in outflows over the past week.
Blockchain stocks faced a similar fate, with outflows continuing, with only six of the 20 weeks this year recording inflows. Since the beginning of the year, there has been a total outflow of $512 million.
The US dominates the inflow of digital assets
The United States led the way last week with $1.02 billion in inflows. The numbers essentially skyrocketed as Grayscale, which had faced $16.6 billion in outflows since the ETF's launch in January, recorded inflows of $18 million for the first time.
Additionally, Switzerland and Germany recorded inflows of $27 million and $4.2 million, respectively, while Hong Kong and Canada experienced outflows of $83 million and $17 million, respectively. Sweden also recorded weekly outflows of $5.9 million.
