In the previous week, there was a positive influx of digital assets into crypto investment products, amounting to $862 million, which is a significant improvement from the $931 million of outflows in the previous week.
However, it seems that the popularity of spot Bitcoin exchange-traded funds (ETFs) is waning. The daily trading volume of ETFs has dropped to $5.4 billion, which is 36% lower than 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 received $1.8 billion in inflows, while the Grayscale Bitcoin Trust (GBTC) experienced $965 million in outflows.
Interestingly, GBTC continues to experience significant outflows, even three months after the approval of its products in the United States on January 11. These continuous outflows have put considerable selling pressure on BTC prices over the past three weeks.
Market experts had anticipated that outflows from GBTC would eventually decrease and lead to a surge in demand for ETFs. However, current investor trends indicate that GBTC outflows are far from over, and it still dominates ETF flows.
The selling pressure from ETFs is evident in the decline of BTC price, which 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 before the Bitcoin halving event scheduled for April 20.
During the BTC price correction, nearly $500 million in liquidations occurred, and the options market saw a surge in heavy put calls, which indicates a bearish sentiment among traders.
In terms of other cryptocurrencies, Ether (ETH) experienced its fourth consecutive week of outflows, with $19 million in the past week. On the other hand, the altcoin market saw a net inflow of $18.3 million, with Solana’s (SOL) token leading the way with $6.1 million in inflows.
In the past week, the region with the largest outflows was the U.S., with $897 million, while Europe and Canada combined saw $49 million in outflows.
In related news, the CEO of Trezor, a leading cryptocurrency hardware wallet provider, believes that the introduction of Bitcoin ETFs on Coinbase could make it a target for hackers and governments.