Digital Asset Investment Products Rebound with $862M Inflows, ETF Activity Slows Down

Investor sentiment towards digital asset investment products witnessed a robust rebound last week, with total inflows reaching $862 million, nearly offsetting the previous week's record outflows of $931 million.

US Leads Global Inflows as ETF Activity Slows: Insights into Bitcoin, Ethereum, and Altcoin Investment Trends

In the United States, inflows dominated the global total at $897 million, while Europe and Canada experienced combined outflows of $49 million. Despite the rebound in inflows, ETF activity appears to be decelerating, with daily trading turnover dropping by 36% from its peak three weeks ago, according to CoinShares data.

Bitcoin investment products saw inflows of $865 million, primarily fueled by renewed interest from new ETF issuers in the US, resulting in $1.8 billion in inflows. However, Grayscale experienced outflows of $967 million, partially offsetting these gains. Short-bitcoin funds also saw outflows for the second consecutive week, totaling $2 million.

In contrast, Ethereum products recorded their fourth consecutive week of outflows, amounting to $19 million, reflecting investor concerns despite network upgrades.

In the altcoin space, inflows totaled $18.3 million, with Solana leading at $6.1 million. Other notable inflows include Filecoin, Polkadot, and Chainlink, at $3.9 million, $2.4 million, and $1.9 million, respectively.

Spot Bitcoin ETFs Face Inflows and Outflows Amid Market Correction and Halving Anticipation

However, as the second quarter of 2024 begins, total inflows into all nine spot Bitcoin ETFs stumbled once again. Notable occurrences include Grayscale ETF GBTC witnessing a single-day net outflow of $302 million, while BlackRock ETF IBIT recorded a net inflow of $165 million, and Fidelity ETF FBTC saw a net inflow of $43.99 million.

Despite ongoing investor interest, the Bitcoin price underwent a sharp correction, dropping over 5% in the last 24 hours to $66,000. This correction coincides with the upcoming Bitcoin halving event, just 19 days away, adding pressure to the entire crypto market.