Digital asset inflows into cryptocurrency investment products saw a positive turn in the past week, totaling $862 million in net inflows after experiencing net outflows of $931 million the previous week. However, the demand for spot Bitcoin exchange-traded funds (ETFs) appears to be declining. The daily trading volume for ETFs has decreased to $5.4 billion, a 36% drop from the peak of $9.5 billion in early March.

Bitcoin led the digital asset inflows with $863 million, boosted by ETF demand. Spot Bitcoin ETFs recorded $1.8 billion in inflows, surpassing the $965 million outflows from Grayscale. Despite the trading of 11 spot Bitcoin ETFs in the United States commencing on January 11, Grayscale continues to experience significant outflows after nearly two months.

The continuous outflow from the Grayscale Bitcoin Trust (GBTC) has impacted the selling pressure on the BTC price in recent weeks. Market analysts had anticipated a slowdown in GBTC outflows over time, leading to increased ETF demand. However, current investor behavior suggests that the outflows from GBTC persist, with GBTC dominating ETF flows in the past three weeks.

The recent decline in BTC price by $4,000 over 24 hours, trading slightly above $66,000, is attributed to selling pressure from ETFs. Market analysts view this correction as routine ahead of the Bitcoin halving event slated for April 20.

The BTC price correction led to liquidations of nearly $500 million, while the options market showed heightened put calls, indicating a bearish trader sentiment.

Ethereum saw its fourth consecutive week of outflows, totaling $19 million, while the altcoin market recorded a net inflow of $18.3 million last week. Solana led the charge with $6.1 million in inflows.

The U.S. witnessed the largest outflows regionally last week at $897 million, while Europe and Canada collectively experienced $49 million in outflows.