Ether Products See 296M Inflow Amid Fed Rate Decision Anticipation

Ether-based investment products saw a substantial inflow of $296 million last week, marking the highest weekly inflow since the 2024 election of US President Donald Trump. This surge occurred despite an overall slowdown in investor activity as markets awaited clarity from the US Federal Reserve's June rate decision. The consistent inflows into Ether ETPs, now in their seventh consecutive week, indicate a significant recovery in investor sentiment.

Ether-based investment products now account for over 10.5% of the total assets under management (AUM) of all crypto-based ETPs. This influx can be attributed to several factors, including network upgrades and the anticipation of ETF inflows, which could support a push toward higher price points. However, trade tensions and deflationary pressures are expected to limit gains, with Ether likely to range between $2,400 and $2,800. A broader market sell-off could test the $2,300 support level, according to analysts.

Across all digital asset investment products, weekly inflows reached $286 million, pushing the seven-week total to over $11 billion. However, Bitcoin funds saw $56 million in outflows, marking the second straight week of net losses. This deceleration in Bitcoin inflows is attributed to investor caution ahead of the Federal Open Market Committee’s (FOMC) next interest rate decision on June 18. Investors have adopted a "wait-and-see" stance as they await further signals from the US Federal Reserve on inflation.

The market is currently pricing in a 99.9% chance that the Fed will keep interest rates steady during the next FOMC meeting. The first interest rate cut of the year could provide the next catalyst for the Bitcoin price, according to some analysts. However, it is important to note that these are forecasts and not actual market movements.

Crypto venture capital deals have also seen a slowdown, with only 62 investment rounds in May, marking the lowest monthly count of 2025. This resulted in $909 million raised for the industry, indicating a cautious approach by investors in the current market environment.