Crypto Market Activity Skirts Slowdown as Ether ETF Inflows Soar
Ether-based investment products led inflows among cryptocurrency-based investment products last week, despite an overall slowdown in investor activity as markets await clarity from the US Federal Reserve.
ETH Resilience Despite Broader Caution
Ether (ETH) exchange-traded products (ETPs) attracted a record $296 million last week according to a Monday report from CoinShares. This marks their strongest performance since the November 2024 US Presidential election of Donald Trump.
ETH-based investment products now constitute over 10.5% of the total assets under management (AUM) of all crypto-based ETPs. This surge represents the seventh consecutive week of inflows for Ether ETPs, signifying “a significant recovery in sentiment among investors” according to CoinShares.
Crypto flows by assets. Source: CoinShares
Analysts anticipate ETH hovering near $2,700. “ETH is likely to range between $2,400–$2,800,” says Ryan Lee, chief analyst at Bitget Research, noting “trade tensions and deflationary pressures limiting gains,” though “network upgrades and ETF inflows could support testing higher levels.”
Fed Uncertainty weighs on Bitcoin
Across all digital asset investment products, weekly inflows reached $286 million, totaling over $11 billion cumulative over seven weeks. However, Bitcoin (BTC) funds experienced net outflows of $56 million, marking another week of flight capital from the premier cryptocurrency.
Market participants are effectively adopting a “wait-and-see stance ahead of further signals from the US Federal Reserve on inflation,” according to CoinShares.
CoinShares attributes the deceleration in BTC inflows to investor caution preceding the Federal Open Market Committee’s next interest rate decision on June 18.
Fed target interest rate probabilities. Source: CME Group’s FedWatch tool
Markets currently show a 99.9% probability the Fed will maintain current rates during the next FOMC meeting, according to CME Group’s FedWatch tool.
Analysts Eye Potential Bitcoin Catalyst
The anticipation for the Federal Reserve’s first interest rate cut of the year represents a potential catalyst, according to Alice Li, investment partner and head of US at Foresight Ventures.
“I’m a strong believer in Bitcoin and the crypto market. So I think Bitcoin could go to at least $150,000 in this cycle,” Li predicted during Cointelegraph’s Chain Reaction X Spaces show.
Bitcoin price trajectory estimation — Source: CoinDesk screenshot (Image used for illustrative purposes)
Crypto VC Activity Moderates
Cryptocurrency venture capital slowed significantly in May, with only 62 investment rounds creating a total funding value of $909 million compared to year-to-date highs.
