Key Points
- Digital asset investment products saw a significant rebound with inflows of $862 million last week.
- Despite the rebound, ETF activity appears to be slowing down, with daily trading turnover under $5.4 billion.
Investor sentiment towards digital asset investment products saw a major recovery last week. The total inflows reached $862 million, almost counterbalancing the preceding week’s record outflows of $931 million.
The United States led the way with an additional $897 million in inflows, dominating the global total. Meanwhile, Europe and Canada together experienced outflows totaling $49 million. Despite the sharp rebound in inflows, the exchange-traded fund (ETF) activity seems to be slowing down. The daily trading turnover was below $5.4 billion, representing a significant 36% drop from its peak three weeks ago, according to data from CoinShares.
Bitcoin and Ethereum Activity
Last week, Bitcoin saw inflows of $865 million. The renewed interest from new ETF issuers in the US resulted in $1.8 billion in inflows. However, these were counterbalanced by Grayscale’s outflows of $967 million. Concurrently, short-bitcoin funds saw outflows for the second week in a row, totaling $2 million.
Ethereum experienced its fourth week in a row of outflows, totaling $19 million. This trend has been consistent following network upgrades and reflects investor concerns regarding their success.
In the altcoin sector, inflows totaled $18.3 million last week, with Solana leading with $6.1 million inflows. Other altcoins like Filecoin, Polkadot, and Chainlink, registered notable inflows of $3.9 million, $2.4 million, and $1.9 million, respectively.
Bitcoin ETF Inflows Stumble
As we enter the second quarter of 2024, the total inflows into all nine spot Bitcoin ETFs stumbled once again. On the first day of April, the spot Bitcoin ETFs registered a net outflow of $85 million.
Noteworthy events include the Grayscale ETF GBTC experiencing a single-day net outflow of $302 million. On the contrary, the BlackRock ETF IBIT recorded a net inflow of $165 million, while Fidelity ETF FBTC saw a net inflow of $43.99 million. The cumulative net inflow for Bitcoin spot ETFs reached an impressive $12.04 billion, highlighting ongoing investor interest in this asset class.
During this period, the Bitcoin price underwent a sharp correction, dropping over 5% in the last 24 hours and falling to $66,000. This price correction has put pressure on the entire crypto market recently. Interestingly, this significant correction occurred just before the forthcoming Bitcoin halving event, which is only 19 days away.
