Bitcoin (BTC) News Update: Inflows to US BTC-Spot ETF Market Surge following US CPI Data Release

Welcome to the Extreme Investor Network blog, where we bring you the latest insights and updates on the stock market, trading, and all things Wall Street. Today, we delve into how US retail sales data and the US CPI Report have been driving buyer demand for riskier assets, particularly BTC which saw a return to the $66,000 handle.

The recent US annual inflation rate fell from 3.5% to 3.4% in April, with the core inflation rate also declining from 3.8% to 3.6%. These softer consumer price trends have sparked investor bets on a potential Fed rate cut in September. Retail sales figures for April further signaled a softer inflation environment, with sales stalling after a 0.6% advance in March.

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According to the CME FedWatch Tool, the probability of the Fed leaving interest rates unchanged in September dropped from 34.9% to 25.5% on Wednesday. This shift in sentiment towards the Fed rate path has influenced buyer appetite for US BTC-spot ETFs.

In terms of inflows into BTC-related funds, here are some key numbers from Farside Investors:

– Grayscale Bitcoin Trust (GBTC) saw net inflows of $27.0 million on Wednesday, following net outflows of $50.9 million on Tuesday.
– Fidelity Wise Origin Bitcoin Fund (FBTC) reported net inflows of $131.3 million, a significant increase from $8.1 million on Tuesday.
– Bitwise Bitcoin ETF (BITB) saw net inflows of $86.3 million after recording zero net flows on Tuesday.
– ARK 21Shares Bitcoin ETF (ARKB) reported net inflows of $38.6 million, down from $133.1 million on Tuesday.
– Excluding flow data for iShares Bitcoin Trust (IBIT) and Invesco Galaxy Bitcoin ETF (BTCO), the US BTC-spot ETF market saw total net inflows of $298.4 million on Wednesday.

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The increase in net inflows over the past two days coincided with 13F filings in the US. Bloomberg Intelligence Senior ETF Analyst Eric Balchunas provided insights on the breakdown of IBIT investors, highlighting the growing interest in BTC-related ETFs.

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