- Digital asset inflows into crypto investment products turned positive last week, amounting to $862 million compared to the previous week’s net outflows of $931 million.
- Despite a cooling interest in spot bitcoin exchange-traded funds (ETFs), Bitcoin led digital asset flows with $863 million in inflows, mainly driven by ETF demand, while Grayscale’s Bitcoin Trust (GBTC) continued to experience significant outflows, putting pressure on BTC prices, which dropped by $4,000 over the past 24 hours.
Despite a net positive flow into the crypto market, spot bitcoin ETF demand seems to have slowed since its peak in the first week of March.
Digital assets came back while ETF slumps
Surprisingly, digital asset inflows into cryptocurrency investment products have made a notable comeback. After experiencing net outflows of $931 million just a week ago, the market saw a sharp reversal with net inflows of $862 million. However, amidst this resurgence, the once red-hot popularity of spot bitcoin exchange-traded funds (ETFs) seems to be waning.
Daily trading volume for bitcoin ETFs has plummeted to $5.4 billion, a stark 36% decline from its peak of $9.5 billion in early March. Despite bitcoin leading in digital asset flows with $863 million in inflows, largely driven by ETF demand, the spotlight remains on the Grayscale Bitcoin Trust (GBTC), which continues to hemorrhage funds.
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BTC’s price declines $4k within 24h
Grayscale’s ETF has been bleeding capital for nearly three months since its approval in the United States, causing significant downward pressure on bitcoin prices in recent weeks. Many anticipated a slowdown in GBTC outflows over time, fueling demand for ETFs, but current trends indicate otherwise. The dominance of GBTC in ETF flows persists, exerting selling pressure on bitcoin.
This selling pressure has taken its toll on bitcoin’s price, which experienced a $4,000 drop in the past 24 hours, hovering just above $66,000. While some analysts dismiss this as a routine correction ahead of the bitcoin halving event scheduled for April 20, others point to mounting bearish sentiment in the options market, marked by heavy put calls and significant liquidations totaling nearly $500 million.
