Investor interest in digital asset investment products remains strong, with a total of $646 million pouring into these vehicles recently. This pushed year-to-date inflows to an unprecedented $13.8 billion, surpassing the previous year’s total. Bitcoin remains the primary focus for investors, with inflows totaling $663 million. However, short Bitcoin investment products saw outflows for the third consecutive week, amounting to $9.5 million, indicating some bearish investor capitulation. Despite the positive trend, enthusiasm from ETF investors is starting to moderate, with weekly flow levels not reaching the heights seen in early March.
Regionally, sentiment remains polarized with the United States attracting the largest share of inflows at $648 million. Brazil, Hong Kong, and Germany also saw inflows of $10 million, $9 million, and $9.6 million, respectively. On the other hand, Switzerland and Canada experienced outflows of $27 million and $7.3 million, respectively. Ethereum experienced outflows for the fourth consecutive week, totaling $22.5 million, while most other altcoins continued to attract inflows. Notably, Litecoin, Solana, and Filecoin saw inflows of $4.4 million, $4 million, and $1.4 million, respectively. The $646 million inflows came after investors poured another $862 million into digital asset investment products the previous week.
Despite the slowdown in Bitcoin spot ETF flows, industry executives like Ripple CEO Brad Garlinghouse remain optimistic about the market. Garlinghouse predicts that the total market value of cryptocurrencies will double this year, largely driven by spot ETFs and the Bitcoin halving. He believes that the introduction of real institutional money through ETFs is a significant factor contributing to this positive outlook. Matteo Greco, a research analyst at digital asset firm Fineqia International, also expects Bitcoin to reach $75,000 by the halving event. Historically, BTC halving events have marked significant points followed by 9-18 months of uptrend, culminating in cycle peaks. As of now, Bitcoin is trading at 72,308, up by more than 4% over the past day, and less than 2% away from its all-time high of $73,750 registered on March 14, according to data from CoinMarketCap.
Overall, investor interest in digital asset investment products remains strong, with significant inflows into these vehicles pushing year-to-date numbers to unprecedented levels. While Bitcoin continues to be the primary focus for investors, there are indications of moderation in enthusiasm from ETF investors. Regionally, sentiment is polarized with some countries experiencing inflows while others see outflows. Industry pundits like Brad Garlinghouse and Matteo Greco remain optimistic about the market despite the slowdown in Bitcoin spot ETF flows. Bitcoin is currently trading close to its all-time high, with expectations of reaching $75,000 by the halving event.
