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

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

Investors' interest in crypto ETFs seems to be tapering off, judging by the rate of weekly inflows.

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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
Etf Excitement Calming Down Despite Crypto Funds Seeing Record 13.8 Billion Dollars Inflows Year-To-Date
Sources:unchainedcrypto
Written by
sevval

Şevval has been actively writing since 2022 and is a third-year mathematics student at Ankara University. Her interest in writing is shaped particularly around innovative technologies such as Web3, artificial intelligence, and blockchain. She closely follows developments in these fields and aims to convey complex topics to readers in a clear and engaging manner. She enjoys combining her mathematical knowledge with technology to create content and strives to raise awareness about the digital world of the future.

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