In the previous week, there was a positive shift in digital asset inflows into crypto investment products, with a total of $862 million in net inflows. This is a significant improvement compared to the previous week, which experienced net outflows of $931 million.
However, the popularity of spot Bitcoin exchange-traded funds (ETFs) appears to be waning. The daily trading volume of ETFs has dropped to $5.4 billion, marking a 36% decrease from its peak of $9.5 billion in the first week of March.
Bitcoin (BTC) led the way in terms of digital asset flows, with $863 million in inflows, largely driven by ETF demand. Specifically, spot BTC ETFs saw $1.8 billion in inflows, while the Grayscale Bitcoin Trust (GBTC) experienced $965 million in outflows.
Interestingly, Grayscale’s ETF continues to face significant outflows, even nearly three months after the products were approved in the United States on January 11. These continuous outflows from GBTC have exerted significant selling pressure on BTC prices in the past three weeks.
Market experts had predicted that outflows from GBTC would eventually slow down and cease, leading to a surge in demand for ETFs. However, the current investor trends suggest that GBTC outflows are still ongoing, with GBTC continuing to dominate ETF flows.
The selling pressure from ETFs is evident in the BTC price, which has dropped by $4,000 in the past 24 hours and is currently trading just above $66,000.
Many market analysts view this price correction as a routine occurrence ahead of the Bitcoin halving event scheduled for April 20. They believe that this correction is a temporary adjustment before the anticipated event.
As a result of the BTC price correction, nearly $500 million in liquidations occurred, while the options market saw an increase in heavy put calls, indicating a bearish sentiment among traders.
In terms of other cryptocurrencies, Ether (ETH) experienced its fourth consecutive week of outflows, with $19 million leaving the market. On the other hand, the altcoin market saw a net inflow of $18.3 million last week, with Solana’s (SOL) token leading the way with $6.1 million in inflows.
In terms of geographical trends, the United States had the largest outflows in the past week, amounting to $897 million, while Europe and Canada combined experienced $49 million in outflows.
Overall, the current state of Bitcoin ETFs has made Coinbase a target for hackers and governments, according to the CEO of Trezor.