US Bitcoin ETFs Surge with $66 Million Inflows

US Bitcoin ETFs saw strong inflows on Monday, May 13, totaling $66 million across all 11 spot Bitcoin ETFs. Despite spot Bitcoin ETF purchases slowing down significantly and sometimes turning negative, both BlackRock’s IBIT and Grayscale’s GBTC had zero net flows that day. Fidelity’s Bitcoin ETF (FBTC) had the highest inflows, at $38.6 million, while Bitwise’s Bitcoin ETF (BITB) came second with $20.3 million. Over the past month, the eleven Bitcoin ETFs collectively faced a net outflow of $297 million, with outflows on 17 trading days. This trend is due to investor caution ahead of upcoming US inflation reports.

Last week, Bitcoin investment products saw $144 million in inflows, ending four weeks of outflows and showing renewed institutional interest. Conversely, Hong Kong’s six spot Bitcoin and Ether ETFs experienced their biggest net outflows since their launch at the end of April. With ETF purchases slowing, macroeconomic factors are more important. The next key event is the US inflation report: the Producer Price Index (PPI), which is released on Tuesday at 8:30 a.m. ET, followed by the Consumer Price Index (CPI) 24 hours later.

The CPI report is more critical, with economists expecting a 0.4% rise in April, the same as in March. The annual CPI rate is expected to slow slightly to 3.4% from 3.5%. The core CPI, excluding food and energy, is forecasted to rise by 0.3% in April compared to 0.4% in March, with the annual rate easing to 3.6% from 3.8%. These inflation metrics are crucial as they affect Federal Reserve policies. Higher inflation could lead to tighter policies, which might hurt Bitcoin. Lower inflation could help Bitcoin by suggesting more lenient monetary policies.

The Bitcoin market is watching these reports closely as they will influence BTC’s price in the near term. Investors are cautious, balancing these macroeconomic factors. Despite recent volatility, strong inflows into Bitcoin ETFs show continued institutional interest.Fidelity’s FBTC, which is leading with significant inflows, highlights confidence in Bitcoin’s long-term potential. This trend indicates a positive outlook among major investors despite short-term price fluctuations.

In summary, recent inflows into Bitcoin ETFs indicate renewed interest, with key upcoming inflation reports expected to impact Bitcoin’s price direction. Investors should stay informed and be ready for potential market changes.