Cover image via U.Today

Reportedly, Bitcoin exchange-traded funds saw an impressive $111 billion in trading volume during the month of March. These ETFs experienced a threefold increase in trading volume compared to the months of February and January. Analyst Eric Balchunas expressed skepticism about the possibility of even higher trading volumes in April, but did not rule it out entirely.

A recent drop in Bitcoin prices was attributed to outflows from spot ETFs, with Grayscale's GBTC losing up to $302 million in a single day on April 1st. The decreased demand for ETFs appears to be a key factor driving the recent bearish trend in the market.

During March of last year, Bitcoin reached its all-time high of $73,737 largely due to high demand for ETFs, but has since experienced multiple corrections. While BlackRock's IBIT ETF quickly accumulated $10 billion in assets under management, current inflows have slowed compared to early March.

Will there be a spot Ethereum ETF?

Following the approval of several Bitcoin ETFs, there was hope for a similar approval for an Ethereum ETF by the U.S. Securities and Exchange Commission. However, the prospects for approval of an Ethereum ETF look bleak at the moment. Analyst Eric Balchunas estimated a low 25% chance of approval, despite personal interest in seeing such a product greenlit.

Despite efforts from industry heavyweights like BlackRock to introduce an Ethereum ETF, the SEC has not shown urgency in approving one due to political pressure and concerns about market volatility.