Analysts predict that a spot Ethereum ETF could be launched next week.
Crypto markets fell on Friday after new data showed inflation in the United States was slowing.
Bitcoin is down 1.4% to trade at $60,600, while Ethereum is down 1.3% and Solana is down 3.6%, reversing most of the gains from ETFs despite today's second filing by 21Shares.
Among the top gainers, Akash Network (AKT) rose 7%, and Ethereum Name Service (ENS) surged 5%, while Fetch.ai (FET), Athena (ENA) and Quant (QNT) all fell more than 5%.
Inflation in May fell to its lowest annual rate since May 2021, according to a report released Friday by the Commerce Department.
The core PCE price index rose 0.1% in May, in line with Dow Jones expectations. On an annual basis, the headline PCE price index rose 2.6%. The PCE index is closely monitored by the Federal Reserve and is very important to traders because it influences interest rate decisions.
“Today's data will likely provide further reassurance to the FOMC that the U.S. economy remains on a precarious disinflationary path,” said Michael Brown, senior research strategist at Pepperstone.
“However, the fact remains that 'one swallow does not bring summer' and therefore May's PCE figures are unlikely to open the door to summer. [rate] I can turn it off myself, but please open the door a little further.”
Crypto sentiment also picked up after asset management firm VanEck filed for a Spot Solana ETF on Thursday.
Ethereum ETF
Reuters reported on July 26 that a spot Ethereum ETF could enter the market as early as the first week of July.
MN Trading CEO Michael van de Poppe said there has been “major bloodshed” in the altcoin market.
“However, an Ethereum ETF is on the way and I expect to see many of the Ethereum ecosystem's tokens flip through it,” he said.
According to the Crypto Fear and Greed Index, market sentiment has shifted into the fear zone amid recent volatility.
Overall inflows into Bitcoin physical ETFs fell to just $13 million on Thursday, according to data from The Far Side.
According to data from CoinGlass, 32,173 traders were seen liquidated for a total of $76 million in the past 24 hours.
