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Cryptocurrency Investment Products See Positive Inflows as Bitcoin ETF Activity Slows Down

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Originally published on: April 02, 2024

In the latest update on digital asset inflows, crypto investment products have seen a recovery with net inflows of $862 million, bouncing back from the previous week’s net outflows of $931 million.

While overall digital asset flows are on the rise, the spotlight is on the cooling interest in spot Bitcoin exchange-traded funds (ETFs). Daily trading volume for ETFs has decreased to $5.4 billion, down 36% from its peak of $9.5 billion in early March.

Bitcoin continues to lead the way, with $863 million in inflows driven by ETF demand. Spot BTC ETFs saw $1.8 billion in inflows, contrasting with $965 million in outflows from the Grayscale Bitcoin Trust (GBTC).

Despite predictions of a slowdown, outflows from GBTC persist, exerting selling pressure on BTC prices for the past three weeks. This trend challenges expectations of increased demand for ETFs.

The downward pressure on BTC prices is evident, with the cryptocurrency dropping by $4,000 in the last 24 hours, hovering just above $66,000. Analysts attribute this correction to the upcoming Bitcoin halving event on April 20.

As BTC prices adjust, the options market signals bearish sentiment with heavy put calls and nearly $500 million in liquidations. Meanwhile, the altcoin market saw Ether recording outflows for the fourth consecutive week, while Solana emerged as a notable inflow leader.

Notably, the U.S. witnessed the largest outflows of $897 million in the past week, while Europe and Canada combined saw $49 million in outflows.

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