Robust Bitcoin ETF Activity Expected Until Halving: Santiment

The on-chain analytics firm Santiment predicts that the flow of Bitcoin exchange-traded funds (ETFs) will continue to be high until the Bitcoin halving later this month. Despite reaching an all-time high in mid-March, the volume of Bitcoin ETFs has not slowed down. Santiment also notes that trader activity remains higher than the turning point in late February when individual trading increased. The firm anticipates that the high ETF activity will persist leading up to the Bitcoin halving, which is expected to take place on April 20. The top seven ETFs have had a daily volume of $3.19 billion, and it will be interesting to see if there is a decrease in volume after the halving event.

Lucas Kiely of Yield App suggests that the accumulation of Bitcoin through ETFs could decrease the likelihood of significant price swings after the halving. In March, spot Bitcoin ETF volumes reached $111 billion, almost tripling the previous month’s volume, indicating consistent interest in these products. Farside Investors reported that there was an increase in Bitcoin ETF inflows at the end of last week, with two days having more than $200 million in net inflow on April 4 and 5. This followed a couple of low days earlier in the week, suggesting a reversal in trend from a strong period in late March.

Grayscale continues to have consistent outflows as it operates as a spot ETF since mid-January. Last week, their GBTC fund saw an outflow of $738 million, resulting in a total outflow of 294,313 BTC from the product. Despite this, industry executives like Ripple CEO Brad Garlinghouse remain confident. Garlinghouse predicts that the total cryptocurrency market value will double this year, driven primarily by spot ETFs and the Bitcoin halving. He believes that the rise of ETFs is attracting institutional investors for the first time.

Santiment expects the high volume of Bitcoin ETFs to continue until the Bitcoin halving event later this month. The top seven ETFs have had a daily volume of $3.19 billion. The accumulation of Bitcoin through ETFs could stabilize the market after the halving. Despite consistent outflows from Grayscale’s spot ETF, industry executives like Brad Garlinghouse remain optimistic about the future of ETFs and their impact on the cryptocurrency market.