Crypto fund inflows rebound as Bitcoin dominates
Crypto fund inflows have returned to positive territory after a three-week slump, driven primarily by Bitcoin. The renewed interest comes after July’s inflation figures were released, which were slightly better than expected. Here are the key points:
- Last week, inflows to crypto funds totaled $28.5 million, with $27 million flowing into Bitcoin.
- Bitcoin experienced net outflows of $144 million over the past three weeks.
- Ether and XRP also saw inflows of $2.5 million and $0.5 million respectively.
- XRP has experienced sixteen consecutive weeks of inflows, with a 127% increase in assets under management since the beginning of the year.
- The improved sentiment is attributed to the recent US inflation data, which suggests a lower likelihood of a September rate hike.
The decline in Bitcoin and other digital assets last year was due to the Federal Reserve’s aggressive rate hiking cycle to combat high inflation. However, with inflation now at 3.2% year over year, the Fed’s hiking cycle may have peaked, making it an opportune time to invest. Furthermore, the Bank of Canada is expected to keep its rate flat until the end of the year. Notably, most crypto inflows last week went to Canada’s Purpose ETF, the first Bitcoin spot ETF in the world. As excitement grows over a potential US Bitcoin spot ETF, analysts predict a 65% chance of approval in 2023.
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