In a notable uptick reflecting market sentiment, digital asset investment products witnessed a remarkable surge in inflows, soaring by 616% week-on-week to reach a staggering $932 million, as reported in CoinShares’ weekly analysis.

This surge marks the second consecutive week of substantial inflows this month, echoing the impressive figures witnessed earlier in the year. James Butterfill, CoinShares’ head of research, attributed the significant inflows to an immediate response to the lower-than-expected Consumer Price Index (CPI) report. He highlighted that the latter part of the week accounted for a significant portion of the total flows, indicating a renewed interest in Bitcoin amidst evolving interest rate expectations.

Despite the surge in inflows, trading volumes remained subdued, standing at $10.5 billion for the week, in contrast to the $40 billion recorded in March. Butterfill noted this disparity, indicating a cautious market sentiment despite the influx of capital.

In the United States, spot Bitcoin exchange-traded funds (ETFs) continued to witness robust numbers, driving inflows in the country to over $1 billion. Notably, Grayscale’s Bitcoin ETF, GBTC, experienced a rare week of inflow, marking a departure from its recent outflow trend. Since the SEC approved ETFs for trading in January, GBTC has witnessed significant outflows, with investors migrating to more cost-effective alternatives like BlackRock’s IBIT and Fidelity’s FBTC.

In contrast, newly launched ETFs in Hong Kong failed to attract anticipated investor interest, with approximately $83 million withdrawn from crypto-related investments in the city-state.

On the Ethereum front, digital asset products experienced a second consecutive week of outflows, totaling $23 million, with cumulative outflows from ETH products reaching $47 million this month. Butterfill attributed these outflows to bearish sentiments surrounding the potential approval of a spot Ethereum ETF product in the US, with the SEC expected to decide on pending applications from VanEck and ARK Invest by May 23 and 24.

However, despite the uncertain regulatory landscape, investor interest in alternative altcoin investment options remained robust. Solana, Chainlink, and Cardano attracted inflows totaling $4.9 million, $3.7 million, and $1.9 million, respectively, signaling continued diversification within the digital asset space amidst evolving market dynamics.