On Monday, May 13, all 11 US Bitcoin ETFs witnessed $66 million in inflows. Despite spot Bitcoin ETF purchases slowing and occasionally going negative, BlackRock’s IBIT and Grayscale’s GBTC saw zero net flows that day.
With $38.6 million inflows, Fidelity’s Bitcoin ETF (FBTC) led, followed by Bitwise’s ($20.3 million). Over the previous month, the eleven Bitcoin ETFs lost $297 million on 17 trading days. This tendency is attributable to market caution before US inflation news.
Bitcoin investment products had $144 million inflows last week, stopping four weeks of outflows and indicating institutional interest.
Hong Kong’s six-spot Bitcoin and Ether ETFs had their highest net outflows since their inception in April. ETF purchases are declining, thus macroeconomic considerations matter.
Next up comes the US inflation report: the Producer Price Index (PPI) on Tuesday at 8:30 a.m. ET and the Consumer Price Index (CPI) 24 hours later.
CPI is more crucial, with analysts predicting a 0.4% increase in April, the same as March. Annual CPI is predicted to fall to 3.4% from 3.5%.
The core CPI, excluding food and energy, is expected to climb 0.3% in April from 0.4% in March, lowering the annual rate to 3.6% from 3.8%.
These inflation indices are key to Fed policy. Higher inflation may tighten policies, hurting Bitcoin. Bitcoin may benefit from looser monetary policy due to lower inflation.
The Bitcoin market is eagerly following these news since they will affect BTC’s price soon. Investors balance macroeconomic considerations cautiously.
Strong Bitcoin ETF inflows indicate institutional appetite despite recent volatility. Leading with substantial inflows, Fidelity’s FBTC shows confidence in Bitcoin’s long-term potential. This suggests significant investors are optimistic despite short-term price volatility.
