The Bitcoin ETF craze is gradually subsiding.

Several US spot Bitcoin ETFs have not seen any inflows, suggesting a decline in their attractiveness to investors.

According to CoinDesk 's analysis team, the initial enthusiasm for spot Bitcoin ETFs (a type of exchange-traded fund that invests primarily in Bitcoin) appears to have subsided. This has affected recent inflows into these funds, even resulting in net buying failing to keep pace with outflows, as seen at Grayscale's Bitcoin Trust (GBTC).

As a result, last week, all spot ETFs saw net outflows of 1,766 Bitcoin (approximately $118.3 million). Most funds, such as Fidelity's Bitcoin Wise Origin (FBTC) and Invesco Galaxy Bitcoin ETF (BTCO), recorded zero inflows. Net selling became a common occurrence.

This makes BlackRock's iShares Bitcoin Trust (IBIT) the only remaining place with a consistent inflow of funds.

James Seyffart, an ETF analyst at Bloomberg Intelligence, believes this is nothing unusual, given that approximately 83% of funds in the US market have no capital at the beginning of each week.

He explained that withdrawing funds and repurchasing a spot ETF typically occurs when there is a sufficiently large gap between supply and demand. Compared to other hedging measures, this has lower implementation costs.

"These fluctuations will cause market leaders to trade in mutual funds in the same way they trade in stocks," he added.

However, the recent cooling down doesn't mean the market has to get used to smaller inflows into Bitcoin ETFs. Many analysts believe this investment channel still has potential in the future.

Samir Kerbage, chief investment officer at Hashdex, who converted his Bitcoin futures fund into a spot Bitcoin ETF in March, said, "There is definitely potential for a resurgence of capital inflows."

According to him, many banks, endowment funds, and pension funds around the world are only just beginning to assess the situation before considering allocating capital to Bitcoin through newly launched ETFs. As these major financial institutions make decisions in the coming months, net capital inflows will increase again and reach new milestones.

"Spot Bitcoin funds will be one of the most successful ETF launches in US history," he predicted.

Since the beginning of April, the world's largest cryptocurrency has mostly traded below $70,000 per unit. Specifically, since the end of last week, the currency has hovered around $63,000, a 15% decrease from its record high.

Besides regional tensions in the Middle East, the market is focusing on the Bitcoin halving – a quadrennial event that halves the reward for miners. Expected to take place in mid- to late April, the event is anticipated to limit supply, thereby stimulating a new price surge.

Xiao Gu (according to CoinDesk )

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