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.”