Wall Street Bigwigs Increase Crypto Investments: US Bitcoin ETFs Garner $2.4 Billion in Q2 Inflows
The cryptocurrency market is enduring significant influence from larger macroeconomic conditions, particularly following the recent US Consumer Price Index (CPI) report. This report has offered a glimmer of hope for risk assets, including cryptocurrencies.
Coinbase’s recent report indicates that the slightly softer-than-expected July CPI print of 2.9% year-over-year – the lowest level in three years – has “calmed market concerns and reinforced expectations of impending Fed rate cuts at the September 17-18 Federal Open Market Committee (FOMC)”.
Despite this positive news, the crypto market has remained range-bound, with Bitcoin (BTC) unable to break through the $61,000 level. Sentiment has slowed down due to a lack of crypto-specific catalysts, and perpetual futures funding rates in BTC have turned negative, potentially indicating lower trader activity.
In the Ethereum (ETH) ecosystem, gas prices have seen a decline, which could signal a decrease in network activity. However, spot Ethereum ETFs in the US have seen inflows this week.
The report highlights the growing institutional adoption of crypto, as evidenced by the latest 13-F filings for US spot Bitcoin ETFs. Notable new holders such as Goldman Sachs and Morgan Stanley have been revealed. These entities, along with others, have contributed to notable net inflows into the ETF complex despite a drop in total assets under management (AUM).
Despite short-term fluctuations and market slowdowns, Coinbase emphasizes the underlying currents of institutional interest and the evolving landscape of ETF inflows that paint a promising picture for crypto prices for the rest of the year.
Looking ahead, the report notes that the upcoming Jackson Hole Economic Symposium, a pivotal event, could sway sentiments and shape the trajectory of crypto markets.
At the time of writing, BTC is trading at $59,679, regaining the top of the range seen in recent days between $57,000 and $60,000.
The information presented here is for educational purposes only and does not represent the opinions of NewsBTC concerning investment decisions. It is recommended that thorough research be conducted before making any investment decisions. Use the information provided here at your own risk.
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