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.

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.


A general rule is that more money flowing into an asset indicates more confidence from investors, 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, which prompted the higher inflows. In the three days after the release of the CPI data, 89% of the total flows were recorded.

With around $942 million in inflows, Bitcoin was a major contributor to the total flows. A total of $4.9 million was received by Solana, while $3.7 million was received by Chainlink. However, due to negative sentiment last week over the approval of the spot ETH ETF, Ethereum had around $23 million in withdrawals.

The digital asset's fortunes have been improving this week, however, because to 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 the area wasn't worth it.

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