- Bitcoin led a massive $865 million inflow into global crypto ETPs last week, overshadowing Ethereum’s $67 million outflow
- The influx was driven by inflows into newly introduced Bitcoin ETFs in the US from BlackRock, Fidelity, and Ark 21Shares
- While Grayscale’s GBTC continued to see outflows of $960 million, the US remained the dominant player with $897 million in Bitcoin ETP inflows last week
The past week saw a significant influx of capital into the digital asset market, spearheaded by Bitcoin. According to CoinShares, Bitcoin saw inflows of $865 million, helping drive a market rebound. Meanwhile, Ethereum sustained its streak of outflows. This article explores the key trends behind these flows.
Bitcoin Inflows Drive Market Rebound
Bitcoin’s Lead Role in the Rebound
Bitcoin saw substantial inflows of $865 million last week, propelled by the launch of new exchange-traded funds (ETFs) in the United States. The trio of BlackRock, Fidelity, and Ark 21 Shares ETFs attracted $1.53 billion combined. This helped Bitcoin lead a recovery in the broader crypto market following the prior week’s $1 billion outflow.
The Importance of US Flows
The US remains the dominant player in crypto flows thanks to new spot Bitcoin ETF products. The US saw inflows of $897 million last week, bringing its monthly total to $5.7 billion. Other countries like Brazil and Australia saw more modest inflows. However, several places including Canada and Europe reported outflows, continuing their negative monthly trends.
Ongoing Outflows from Grayscale’s GBTC
Grayscale’s GBTC continued to bleed, with $960 million leaving the fund last week. This brought total March outflows to over $6 billion and year-to-date outflows to $14.7 billion. The advent of new spot Bitcoin ETFs has led investors to exit GBTC in favor of these products.
Ethereum’s Outflows Continue
Ethereum’s Outflow Trend
Ethereum saw further outflows of $19 million last week, extending its streak of negative flows to three consecutive weeks. March outflows for Ethereum now total $672 million.
Inflows for Some Altcoins
Some altcoins bucked the outflow trend last week. Solana, Litecoin, XRP, Cardano, and Polkadot all saw inflows, led by Solana with $61 million. XRP inflows hit $38 million despite ongoing legal issues.
Short Bitcoin Products See Outflows
Short Bitcoin products saw $2 million in outflows last week. This aligns with renewed optimism about Bitcoin holding the $70,000 level.
Conclusion
Bitcoin is leading a crypto market rebound thanks to substantial inflows from new US ETF products. However, Ethereum has continued to see outflows amid a difficult start to the year for the second-largest cryptocurrency. It remains to be seen whether Ethereum can turn around its flow trajectory as Q2 gets underway. For now, Bitcoin is carrying the momentum in the crypto ETP space.Bitcoin Leads Massive $800M Digital Asset Market Influx
