ETF Excitement Calming Down Despite Crypto Funds Seeing Record 13.8 Billion Dollars Inflows Year-to-Date

Crypto News– Last week marked a turnaround for global crypto funds, with data from CoinShares indicating $646 million in net inflows.

ETF Excitement Calming Down Despite Crypto Funds Seeing Record 13.8 Billion Dollars Inflows Year-to-Date

This figure, combined with the $862 million inflows recorded the preceding week, helped offset somewhat the record $942 million outflows that crypto asset managers experienced during the week of March 25.

Year-to-date, inflows into digital asset investment products have reached a record $13.8 billion, surpassing the $10.6 billion observed during the 2021 bull market.

However, James Butterfill, head of research at CoinShares, noted signs indicating a moderation in hype driven by spot bitcoin exchange-traded funds (ETFs). This is evident as crypto-focused funds fail to reach the weekly flow levels seen earlier in the month. Additionally, trading volumes across these products have declined to $17.4 billion, significantly lower than the $43 billion recorded in the first week of March.

Bitcoin remains the focus, seeing inflows totalling $663m, while short-bitcoin investment products saw outflows for the 3rd week in a row totalling $9.5m, suggesting minor capitulation amongst bearish investors.

James Butterfill

In particular, focusing on the ETF sector, Grayscale’s GBTC spot bitcoin ETF experienced significant outflows totaling $303 million within the last day. This surpasses the combined net inflows into bitcoin ETFs from BlackRock, Fidelity, Ark/21Shares, and Bitwise.

As the halving event draws near, some industry observers anticipate a decrease in supply along with robust ETF demand, potentially resulting in a bitcoin price surge. However, former BitMEX CEO and seasoned Bitcoin advocate Arthur Hayes has made a contrary prediction this time around.

The narrative of the halving being positive for crypto prices is well entrenched, When most market participants agree on a certain outcome, the opposite usually occurs. That is why I believe Bitcoin and crypto prices in general will slump around the halving.

Arthur Hayes