The dwindling interest in spot Bitcoin ETF may have been caused by a drop in BTC price from its ATH of $73,750 to $67,000.
The crypto market saw its inflows drop to $646 million last week as enthusiasm for Bitcoin Exchange-Traded Funds (ETFs) may be declining.
As revealed in a blog post by CoinShares, last week’s crypto inflows amounted to $646 million. This figure contributes to a year-to-date inflow of $13.8 billion, exceeding 2021’s total of $10.6 billion. Despite this bullish signal, CoinShares researcher, James Buterfill outlined a contrasting view from ETFs.
Butterfill noted that the last week’s inflows had fallen short of levels seen in early March. This decline, according to the researcher, hints at reduced appetite from ETF investors. Per the data from CoinShares, BlackRock’s iShares led the charge with inflows of $881 million, while ETFs from Fidelity Investments recorded $395 million in inflows. On the other hand, Grayscale Bitcoin Trust (GBTC) and Ark Invest and 21Shares’ (BITB) recorded outflows of $731 million and $76 million respectively.
The dwindling interest in spot Bitcoin ETF may have been caused by a drop in BTC price from its All-Time High (ATH) of $73,750 to $67,000. Across various jurisdictions, crypto sentiments remain divided. To fully comprehend this, the United States saw an additional inflow of $648 million.
Other countries such as Brazil, Germany, and Hong Kong were not left behind as they also saw inflows of $10 million, $9.6 million, and $9 million respectively. However, outflows of $27 million and $7.3 million were recorded for both Switzerland and Canada.
As regards cryptocurrencies, Bitcoin (BTC) remained the major focus, with total recorded inflows of $663 million. However, short Bitcoin investment products witnessed outflows totaling $9.5 million for the third week in a row. This suggests that some Bitcoin investors may be withdrawing from holdings in response to prevailing market conditions.
Moreover, Ethereum, the second-largest cryptocurrency by capitalization responded to the market with outflows totaling $22.5 million for the fourth consecutive week. This move is in stark contrast to a majority of other altcoins, which continue to enjoy inflows. For instance, Litecoin (LTC), Solana (SOL), and Filecoin (FIL) had inflows of $4.4 million, $4 million, and $1.4 million, respectively.
Bitcoin’s Price Sees Uptick
At the time of writing, BTC is trading at $71, 825, up by 3.63% in the past day with its market capitalization standing at $1.4 billion. Bitcoin’s trading volume has also increased by an astounding 78.85% to $35 billion in the last 24 hours. With a bullish breakout from a falling logarithmic trend in the four-hour time frame, it can be assumed that the bulls have taken control.
This bullish uptick in the price of the leading cryptocurrencies comes only a few days before the halving event. As previously reported by Coinspeaker, crypto traders and investors anticipate that the event will be a major catalyst to boost Bitcoin’s price. The resurgence being recorded may also stir a shift in the crypto inflows into the market this week and this second quarter.
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