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Response to CPI data causes weekly inflows of digital assets to surge by more than 600%
Crypto ETFs in the area may not be worth the hype, as $82.5 million is being pulled out of Hong Kong. Even if it was up a little from the previous week, the total volume of global ETFs was still much lower than what was witnessed in March and April.
After a US Consumer Price Index (CPI) showed a softer-than-expected inflation rise last week, crypto assets experienced a 600% surge in net inflows, according to Coinshares' weekly survey on digital asset flows. This suggests growing investor confidence, which could potentially lead to a rise in the price of Bitcoin.
Almost $1 billion in digital asset inflows
Data from Coinshares shows that digital asset funds continued to see inflows last week, with $932 million in net inflows, a 619% rise from $130 million the week before. Generally, more money flowing into an asset indicates investor confidence, which might lead to a price rise.
The US stated on Wednesday that consumer price index (CPI) climbed by a less-than-expected 0.3%, suggesting progress towards the Federal Reserve's 2% objective. This news prompted the higher inflows, with 89% of the total flows recorded in the three days following the CPI data release.
Bitcoin was a major contributor to the total flows, with around $942 million in inflows. This could be a sign of investors returning to the market. Solana received $4.9 million, while Chainlink received $3.7 million. However, Ethereum had around $23 million in withdrawals due to negative sentiment last week over the approval of the spot ETH ETF.
The digital asset's fortunes have been improving this week, however, because of speculation that the SEC would approve the ETFs in time for the May 23 deadline.
The United States received almost $1 billion, making it the most generous region. About $17 million left Canada's financial system for the second week running. With $82.5 million leaving the city, it seems the launch of Bitcoin and Ethereum ETFs in Hong Kong wasn't worth it.