Crypto ETF Inflows Amass $1.2B With Bitcoin Taking the Lead

Key Insights:

• Crypto ETF inflows surged to over $1.2 billion in the last week.
• BTC led the charge with more than $933 million influx as U.S. Bitcoin ETFs closed $823 million last week.
• However, BTC and ETH price continued struggling despite the institutional capital.

The crypto ETF sector continued to see inflows last week with $1.2 billion in net inflows, bringing the total to $4.6 billion in the last four weeks. The consistent inflows come amid a period of Bitcoin price rebound.

Crypto ETF Records Massive Inflows

Assets under management (AuM) for the crypto ETF sector grew to $155 billion, the highest level since February 1. However, it still falls short of the previous cycle high of $263 billion in October 2015.

In the meantime, investors are also eyeing the April 28-29 Federal Open Market Committee (FOMC) meeting. This is a further risk factor for these funds.

By region, the U.S. crypto ETF led with $1.1 billion, comprising the bulk of new investments. As per the latest CoinShares report, the U.S. spot Bitcoin ETFs contributed greatly to this feat with a $823 million influx last week.

Moreover, Germany recorded $61.7 million, more than double of last week’s inflows. Whilst Switzerland reversed its $138 million in outflows with $35.2 million in crypto fund inflows. In addition, Canada contributed $15 million.

The crypto ETF boom was led by Bitcoin-based products. These funds registered $933 million in new inflows with the total year-to-date inflows hitting $4 billion.

Meanwhile, short-Bitcoin products reported $16.5 million in inflows, which shows a consistent (but not extreme) level of hedging by investors.

In addition, Ethereum-based products also recorded inflows, with $192 million flowing in. This is the third week in a row that Ethereum ETF products have seen more than $190 million in inflows, despite relatively softer price action. Meanwhile, blockchain equity ETFs have seen $617 million in inflows over the last three weeks.

Technical Scenario For Bitcoin & Ethereum Price

Analyst Ted Pillows’ technical Bitcoin price analysis shows a developing divergence. On the 4-hour chart, BTC price is in a rising channel of higher highs and higher lows. However, momentum is weakening despite growing crypto ETF inflows.

As Pillows pointed out, “$BTC has been in a rising channel with consistent HHs and HLs. But RSI is making lower highs, which is a sign of momentum weakness.”

Further, Ethereum is looking more vulnerable. The price has struggled to sustain above the $2,400 resistance level, with several attempts adding to a resistance band.

Pillows said, “$ETH is looking weak here,” as $BTC has been strong in reclaiming levels.

Ethereum price is currently below resistance, with the key support zone between $2,200 and $2,250. The analyst believes that this level “might get retested before any bounceback.”