Markets
Crypto Markets Fall After Inflation Data Meets Expectations
Analysts are optimistic that Ethereum ETFs could launch in June.
Crypto markets traded lower on Friday following inflation numbers in line with expectations.
Bitcoin fell 2%, with Ether losing 1% and Solana around 2.5%%, according to data from CoinGecko. Meme coins also recorded losses, with Dogecoin, Dogwifhat, Shiba Inu and FLOKI falling between 3% and 8%.
The Personal Consumption Expenditure (PCE) price index, which excludes food and energy costs, pink by 0.2% in the month, corresponding to the expectations of Dow Jones analysts. The PCE tracks changes in the prices of goods and services consumed by individuals.
US stock markets also fell following the release of the inflation report. The S&P 500 and Nasdaq fell 0.7% and 1.7%, respectively.
Ether’s relative strength is likely driven by optimism that Ethereum exchange-traded funds (ETFs) could go live by the end of June.
Ethereum ETF Outlook
Bloomberg analyst Eric Balchunas believes the SEC will have another round of adjustments for Ethereum ETF applications.
“Launching at the end of June [is] a legitimate possibility [although] keeping my departure date as July 4th,” he he said.
BlackRock, the world’s largest asset manager, is in motion closer to launching its spot Ethereum ETF. On May 28, the company filed an amended registration statement with the U.S. Securities and Exchange Commission (SEC). The updated S-1 form is a necessary step before the fund can begin trading. This filing came nearly a week after the SEC approved Forms 19b-4 for eight Ethereum ETFs, including BlackRock’s iShares Ethereum Trust.
ETF Entry Subsidy
Far-Side Data show that Bitcoin ETF flows are cooling again.
Total Bitcoin ETF inflows for the week of May 20 were significantly higher at $1 billion, compared to $122 million for the week of May 27, excluding today.
The largest single-day inflow this week occurred on May 30, with US$49 million.