Digital Asset Products See $862M in Inflows, Nearly Erasing Previous Week’s Outflows
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Digital asset investment products experienced a positive turnaround in sentiment as inflows reached a total of $862 million last week, almost fully recovering from the record outflows of $931 million in the prior week.According to a recent report by CoinShares, Bitcoin (BTC) products attracted almost all of the inflows, drawing around $865 million.The report said that the increase can be attributed to renewed interest from new ETF issuers in the United States, who contributed $1.8 billion in inflows.However, Grayscale, a prominent digital asset management firm, experienced outflows of $967 million during the same period. Short-Bitcoin products, on the other hand, faced outflows for the second consecutive week, totaling $2 million.
Digital asset investment products back in inflow territory last week at plus $862m. pic.twitter.com/VDXjvSCwSA
— LondonCryptoClub (@LDNCryptoClub) April 1, 2024
ETF Activity Starts to Slow Down
However, it’s worth noting that the activity in exchange-traded funds (ETFs) has started to slow down, with daily trading turnover now at $5.4 billion, a decline of 36% compared to its peak three weeks ago. Despite this decrease, the current turnover remains significantly higher than the 2023 average of $347 million, suggesting that the initial market hype is gradually cooling off.On a regional level, the divergence in investor sentiment continues. The United States witnessed an additional $897 million in inflows, while Europe and Canada combined experienced outflows of $49 million, bringing the year-to-date outflows for these regions to $785 million.Meanwhile, Ethereum, the second-largest cryptocurrency, witnessed outflows of $19 million for the fourth consecutive week. This trend is often observed after network upgrades, reflecting investor caution regarding the success of these updates.In the altcoin market, there were inflows of $18.3 million last week. Solana emerged as the top performer, attracting $6.1 million in inflows. Other notable inflows were seen in Filecoin, Polkadot, and Chainlink, which received $3.9 million, $2.4 million, and $1.9 million respectively.
Spot Bitcoin ETFs Start Week with Outflows
Spot Bitcoin ETFs saw net outflows on Monday as withdrawals from Grayscale’s Bitcoin ETF (GBTC) surged once again, reaching over $300 million.The combined net outflow for Bitcoin spot ETFs reached $85.84 million, driven primarily by the significant outflow from GBTC. On the other hand, BlackRock’s ETF IBIT saw a net inflow of $165 million, and Fidelity’s ETF FBTC recorded a net inflow of $43.99 million. Overall, Bitcoin spot ETFs have attracted a cumulative net inflow of $12.04 billion.The negative flows in Bitcoin ETFs coincide with a correction in the price of Bitcoin, which dropped 5% to as low as $66,000. As of now, the leading cryptocurrency is trading at $66,858, down by more than 4% over the past day. Meanwhile, the correction comes just weeks before the upcoming Bitcoin halving event, which is expected to occur in 19 days.
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