Exchange-traded funds (ETFs) tracking crypto assets, alongside Bitcoin-heavy MicroStrategy (MSTR), are now averaging $10 billion in daily trading volume, according to prominent market commentator Eric Balchunas. That figure – which excludes options activity and non-BTC spot volumes – marks a retreat from the February peaks but still underlines the growing dominance of ETFs in crypto markets.
While aggregate volumes remain elevated, the steady decline since February points to a bear-market hangover that is reshaping trade flows. Balchunas stressed that the high turnover is increasingly siphoning liquidity away from traditional crypto exchanges, which are struggling to match the cost-efficiency and accessibility of ETF products.
Fresh on-chain data from analyst @lookonchain paints a contrasting picture across the two largest digital assets. Over a single 24‑hour period, Bitcoin ETFs absorbed a net inflow of 1,600 BTC worth roughly $102.33 million. Over the past week, those same products gathered an additional 1,241 BTC (≈$79.36 million), signaling robust institutional appetite even as broader sentiment languishes.
In stark contrast, Ethereum ETFs bled 6,558 ETH (≈$12.27 million) in one day, pushing the 7‑day net outflow to an eye‑catching 16,270 ETH, or approximately $30.44 million. The divergence highlights a clear investor preference for Bitcoin as a perceived safe‑haven within crypto, fueled by ongoing macroeconomic uncertainties and a regulatory environment that continues to favor the original cryptocurrency over altcoins.
