1 min readThe materials on this website or any third-party websites accessed herein are not associated with and have not been reviewed or approved by: (i) Valkyrie Funds LLC dba CoinShares, its products, or the distributor of its products, or (ii) CoinShares Co., its products, or the marketing agent of its products.
Digital asset inflows return and disinflationary trend revives
The headline of the week is the recent Consumer Price Index (CPI) data indicating a renewed disinflationary trend, which is significantly shaping expectations around interest rates cuts. This shift has a direct impact on risk assets and we've seen crypto benefit from this yesterday, with bitcoin closing the day up +7.5%.
Meanwhile, digital asset investment products saw inflows for the first time in five weeks, totalling $130m, and are continuing with US$438m inflows so far this week. Grayscale has experienced a notable decrease in outflows, reaching its lowest level since January. This all indicated a renewed investor interest in the crypto market. Speculation around the potential approval of a spot Ethereum ETF is adding to the momentum, influencing investor sentiment. However, the low level of interaction from US regulators with Ether ETF issuer applications has increased expectations that approval is not imminent - this has been reflected in outflows in ETH trackers, which totalled $14 million last week.
