Cryptocurrency exchange-traded funds (ETFs) extended their afternoon gains during the trading session. At the time of writing, the Bosera Ethereum ETF (03009) surged 6.07% to HK$1.432, while the ChinaAMC Ethereum ETF (03046) rose 6.01% to HK$4.448. The ChinaAMC Bitcoin ETF (03042) increased by 4.01% to HK$7.905, and the Harvest Bitcoin ETF (03439) advanced 3.91% to HK$7.98.

The positive price action follows signs of a market recovery. Data from Deutsche Bank indicates that crypto ETFs recorded net inflows of $281.8 million last week. This marks the first weekly inflow since the second week of May, effectively ending a streak of eight consecutive weeks of outflows that saw a cumulative withdrawal exceeding $7 billion. Specifically, Bitcoin ETFs attracted $197.4 million, and Ethereum ETFs saw inflows of $84.4 million.

Market sentiment was further bolstered by the better-than-expected easing of U.S. inflation in June. Fabian Dori, Chief Investment Officer of crypto bank Sygnum, noted that the latest inflation data sends a positive signal. He suggested that the inflationary pressures driven by rising energy prices this spring are gradually subsiding rather than spreading more broadly across the economy, which is viewed as a favorable development for the cryptocurrency market.