By
Temitope Olatunji
April 26th, 2024
Despite the market sentiment, altcoins sparked investor interest, resulting in a net inflow of $16 million.
Crypto investment products witnessed record weekly outflows totaling $942 million, the first outflow after a record 7-week run of inflows totaling $12.3 billion.
Bitcoin ETFs See Reduced Inflows
A recent report from CoinShares revealed that while trading volumes in Exchange-Traded Products (ETPs) were high at $28 billion for the week, they were only two-thirds of those in the previous week. The recent price correction reduced total Assets Under Management (AUM) by $10 billion but remained above prior cycle highs at $88 billion.
James Butterfill, a Researcher at CoinShares noted that investors’ reluctance following the recent price correction resulted in smaller inflows into US Exchange-Traded Funds (ETFs). These inflows totaled $1.1 billion, which somewhat offset the large outflows of $2 billion from Grayscale Investments last week.
With $904 million in outflows, Bitcoin (BTC), the world’s largest cryptocurrency, took the brunt of the withdrawals. Minor withdrawals totaling $3.7 million were also observed for short-Bitcoin products. This development comes only shortly after Bitcoin retraced more than 10% from its all-time high. Cardano (ADA), Solana (SOL), and Ethereum (ETH) were also hit hard, with withdrawals of $3.7 million, $5.6 million, and $34 million, respectively.
Despite the market sentiment, altcoins sparked investor interest, resulting in a net inflow of $16 million. Polkadot (DOT) received the most inflows, totaling $5 million, followed by Avalanche (AVAX) at $2.9 million and Litecoin (LTC) at $2 million.
The negative sentiment was not limited to the US market, as outflows occurred in Sweden ($37 million), Switzerland ($25 million), Hong Kong ($35 million), and Germany ($4 million). However, Brazil and Canada defied the trend, with inflows of $9 million and $8.4 million, respectively.
Bitcoin Price Movements
As of the latest data from CoinMarketCap, Bitcoin is experiencing mild recoveries, underscoring the worst of the selloffs might be over. However, CoinGlass data revealed a substantial liquidation event. Leveraged futures positions worth more than $100 million were forced to close in the last 24 hours, with approximately $55 million coming from short bets on Bitcoin.
Nonetheless, renowned author Robert Kiyosaki has reiterated his bullish outlook for Bitcoin’s future. Kiyosaki recently stated in an earlier Coinspeaker report that he planned to purchase an extra 10 Bitcoin units before the upcoming halving event, which is anticipated to take place in April. His conviction that this event could affect the asset’s scarcity and, thus, its value appears to be the driving force behind his decision to increase his Bitcoin holdings.
He advised those who couldn’t afford a whole Bitcoin to think about fractional ownership by buying Satoshis or making an investment in Bitcoin ETFs. His suggestion shows that he is aware of potential accessibility issues for some investors and that he wants to provide everyone with the chance to invest in digital assets.
At the time of writing, the price of Bitcoin is changing hands for $67,565.00, up by 3.33% in 24 hours, a figure that shows steady recovery from the lows recorded over the weekend.