Markets
Crypto Markets Fall After Inflation Data Meets Expectations
Analysts are optimistic about the launch of Ethereum ETFs in June.
Crypto markets fell on Friday, after inflation numbers came in line with expectations.
Bitcoin fell 2%, with Ether losing 1% and Solana around 2.5%, according to data from CoinGecko. Meme coins also saw 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% over 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 after the release of the inflation report. The S&P 500 and Nasdaq are down 0.7% and 1.7%, respectively.
Ether’s relative strength is likely due to optimism that Ethereum exchange-traded funds (ETFs) will go live by the end of June.
Ethereum ETF Outlook
Bloomberg analyst Eric Balchunas believes that the SEC will make another round of adjustments for Ethereum ETF applications.
“Launch at the end of June [is] a legitimate possibility [although] keeping my release date to July 4th,” he said.
BlackRock, the world’s largest asset manager, is moving closer to the launch of its spot Ethereum ETF. On May 28, the company filed an amended registration statement with the United States Securities and Exchange Commission (SEC). The updated Form S-1 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 flows decline
Farside Data watch as Bitcoin ETF inflows cool down 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 highest daily inflow this week was on May 30, at $49 million.