- Bitcoin ETF flows have fallen sharply since the start of the week.
- The liquidity inventory ratio rose, meaning supply could support demand for a long time.
Bitcoin [BTC] has shown sideways movement over the past ten days, fluctuating between $61,000 and $65,000, data from CoinMarketCap showed. Even the recent halving failed to provide a decisive upward momentum to its trajectory.
Demand for ETFs stagnating?
Julio Moreno, head of research at on-chain analytics firm CryptoQuant, attributed this in part to declining inflows into US spot ETFs.
Indeed, a net outflow of $217 million was recorded on April 25, and the funds have lost nearly $147 million since the start of the week, AMBCrypto noted using SoSo value facts. More than $200 million worth of Bitcoins were siphoned off last week.
Note that these investment vehicles have been one of the main drivers of Bitcoin’s price movement since their launch in early January. Net positive days have invariably pushed prices up and vice versa.
The available supply could meet demand for a longer period
The declining demand was also visible in the sharp decline in the number of collection addresses since the end of March. For the curious, accumulation addresses are those that have a history of only buying BTC, but no history of selling.
ETFs, which absorb BTCs to back their stocks, fall under this category.
As a result, the liquidity inventory ratio, which measures the asset’s sell-side liquidity against its demand, rose sharply from 15 months at the end of March to 24 months at the time of writing.
What this meant in layman’s terms was that the available BTC supply would last longer given the declining demand. 
Source: CryptoQuant
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Shivam Thakral, CEO of Indian cryptocurrency exchange BuyUcoin, predicted that the upcoming listing of Hong Kong spot ETFs could boost demand for the king coin. In a statement shared with AMBCrypto he said:
“Following the launch of the Hong Kong ETF, we can expect Bitcoin to see similar price momentum to January, which could potentially push the largest crypto to a new ATH in the coming months.”