Crypto inflows jump to $857.9mln as CLARITY Act vote nears – Can momentum last?

After a slow April, the first week of May was indeed a good one. In addition to price action, investment products for digital assets also showed trends.

According to CoinShares’ weekly report, $857.9 million was invested in crypto investment products, marking the 6th consecutive week streak of inflows. Also, this week saw the biggest weekly inflow since the 24th of April.

Overall market sentiment

This occurred at a time when the global crypto market cap changed hands around $2.61 trillion to $2.66 trillion. At the same time, the Crypto Fear and Greed Index was oscillating between the “Fear” and “Neutral” zones.

Though Bitcoin [BTC] managed to stay above the $76,000 mark, it was still unable to break past the $80k price level in the past week. At press time, however, Bitcoin was trading around ​​$81,135.86 after a hike of over 11% in the past week. 

Meanwhile, total AuM increased to $160 billion, up from $155 billion the week before. 

Winners and losers of the past week 

As anticipated, Bitcoin accounted for the majority of inflows during the past week, recording inflows of $706.1 million, bringing the total year-to-date inflows to $4.9 billion.

However, the biggest weekly outflow this year was $14.4 million, which came from short-bitcoin products. In the altcoin market, Ethereum [ETH] saw inflows of $77.1 million, which reversed outflows of $81.6 million the week before.

Additionally, both Solana [SOL] and Ripple [XRP] saw significant accelerations on recent activity, recording $47.6 million and $39.6 million, respectively. 

What was behind this?

That said, the market experienced such positive momentum when the final compromise in the CLARITY Act negotiations was reached.

For those unaware, last week, a joint statement from Republican Senator Thom Tillis and Democrat Angela Alsobrooks was released, which indicated that the deal is nearing its conclusion.

Now, with the Senate Banking Committee and Senator Tim Scott also putting the CLARITY Act up for a vote on the 14th of May, it remains to be seen what follows. 

Final Summary

• The digital asset investment product sees the sixth consecutive week of inflows.
• The CLARITY Act was the biggest catalyst behind this positive momentum.