The US BTC-spot ETF market saw a positive response to the inflation expectation figures, with total net inflows reaching $251.9 million on Friday, up from $107.9 million on Thursday (May 23).
Despite the hawkish FOMC Meeting Minutes and hotter-than-expected US S&P Global Services PMI, the US BTC-spot ETF market saw total net inflows of $1,056.7 million in the week ending May 24. Total net inflows were the highest since the week ending March 15 (+$2,565.7 million).
Nevertheless, BTC continued to fall short of the $70,000 handle. Uncertainty about a September Fed rate cut could impact BTC price trends before the US Personal Income and Outlays Report (Friday, May 31).
Better-than-expected personal income/spending and hotter-than-expected inflation numbers could refuel speculation about a Fed rate hike. A more hawkish Fed rate path could kickstart a broad-based crypto sell-off.
However, ethereum (ETH) spot ETF market-related news may counter the effects of a more hawkish Fed rate path.
Approvals of the S1 forms and the launch of ETH-spot ETFs would pave the way to a crypto-spot ETF market. Issuers may want to assess US ETH-spot ETF flow trends before filing applications for altcoin-spot ETFs. Weak demand for US ETH-spot ETFs could delay filings for altcoin-spot ETFs until after the US Presidential Election.
