Ethereum ETF Inflows Hit Record High; Circle and Stripe Explore New Layer-1s Ahead of CPI Release
Ethereum ETF inflows reached an all-time high last week, with spot ETH funds drawing over $840 million, according to CoinShares. The surge underscores growing institutional demand for Ethereum.
Meanwhile, Circle and Stripe have outlined plans to launch new layer-1 blockchains to host stablecoin issuance and expand payment rail efficiency. Circle’s roadmap includes a dedicated L1 optimized for USDC, aiming to reduce transaction costs and improve scalability. Stripe also confirmed exploration of its own L1 network to support crypto payments at scale. Both initiatives signal confidence in broader blockchain infrastructure growth.
Today, markets await the release of May’s US Consumer Price Index (CPI). Economists forecast headline inflation rising 0.3% month-on-month and easing yearly to 4.1%. A moderate CPI print could ease Fed tightening concerns, potentially bolstering crypto sentiment. Traders should watch ETF flows and CPI data closely. The combination of record ETH ETF inflows, new L1 developments by Circle and Stripe, and key inflation figures promises to shape short-term volatility and offer fresh opportunities in the Ethereum market.
Bullish
Record-high Ethereum ETF inflows often precede price rallies, as seen in early 2024 when weekly bookings above $500 million lifted ETH by 10% the following week. Circle and Stripe’s L1 plans signal stronger infrastructure expansion, driving real-world stablecoin use cases. Moreover, a moderate CPI print can reduce rate-hike pressures, further fueling risk-on sentiment. In the short term, heightened ETF demand and positive inflation data may spark ETH upside. Long term, robust institutional adoption and Layer-1 innovations underpin sustainable growth in the Ethereum ecosystem.