Digital asset flows recover, but ETF activity slows.
Digital asset inflows into crypto investment products were positive last week, with net inflows of $862 million compared to $931 million the week before.
However, the popularity of the spot Bitcoin exchange-traded funds seems to be waning. Daily trading volume fell to $5.4 billion, down 36 percent from the peak of $9.5 billion recorded in the first week of March.
Bitcoin (BTC) came out on top, aided by ETF demand, with $863 million in inflows compared to $965 million from the Grayscale Bitcoin Trust (GBTC).
Greyscale's ETF continued to see a nearly three-month high inflows from the Jan. 11 approval of products in the United States.
The continuous flow from GBTC has put significant selling pressure on BTC prices over the past three weeks.
Market analysts predict that outflows from GBTC will eventually slow and dry up, leading to unprecedented demand for ETFs.
However, current investor trends indicate that GBTC exits are far from over, with GBTC still dominating ETF flows.
As the world's top cryptocurrency has fallen by $4,000 in the past 24 hours, trading above $66,000 at the time of writing, the selling pressure from ETFs is evident on the price of BTC.
Many market analysts called it a normal correction ahead of Bitcoin's halving event scheduled for April 20.
BTC's price correction suggests bearish trader sentiment as the options market heats up with heavy calls as it sees nearly $500 million in liquidity.
Related: Bitcoin Exchanges' BTC Balances Fall To $10B By 2024
Ether (ETH) recorded its fourth consecutive week of outflows, clocking in at $19 million this week. The altcoin market recorded a net income of $18.3 million last week, led by the Solana (SOL) token with an income of $6.1 million.
The United States, Europe and Canada are the regions where a total of $49 million was spent last week, with $897 million in outflows.
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