Bitcoin ETFs Maintain High Activity Ahead of Bitcoin Halving; Crypto Market Growth Expected
Summary:
Santiment, an on-chain analytics firm, predicts that flows for spot Bitcoin ETFs will remain robust until the Bitcoin halving event, due to occur on April 20. Despite hitting a record high in mid-March, the volume of Bitcoin ETFs has not slackened, demonstrating consistent interest in cryptocurrency. Industry experts like CEO of Ripple, Brad Garlinghouse, remain optimistic about the future of the crypto market, stating that spot ETFs and the upcoming Bitcoin halving will likely cause a significant rise in the crypto market's total value.
The upcoming Bitcoin halving event is expected to keep the flows of spot Bitcoin exchange-traded funds (ETF) robust, as has been observed by the on-chain analytics company, Santiment. The firm has noted that despite hitting a record high in mid-March, the volume of Bitcoin ETF hasn’t decelerated, maintaining a distinct upswing from the late February turning point as individual trading intensified. Santiment, in a post on X on April 8, even forecasted the continued brisk activity of ETF till the Bitcoin halving event due in a fortnight.
The anticipated Bitcoin halving event, occurring once every four years, is slated for April 20. Santiment has registered a daily volume of $3.19 billion shared among the top seven ETFs, making it intriguing to note if a decline in ETF volume and on-chain volume follows directly subsequent to the event. Lucas Kiely of Yield App recently proposed that the Bitcoin accumulation through ETFs could stave off major fluctuations post the halving.
Spot Bitcoin ETF volumes ascended to $111 billion in March, nearly triple the volume observed in the preceding month, demonstrating a steady interest. As per Farside Investors, Bitcoin ETF inflows experienced a surge at the end of the last week, with net inflow exceeding $200 million on both April 4 and 5. This followed a sluggish beginning of the week characterized by an $85.7 million outflow on April 1, hinting at a shift from the potent days in late March. Grayscale persists in pulling down the collective data with steady outflows each day since its conversion to a spot ETF in mid-January. In the previous week, GBTC fund, run by the firm, suffered a $738 million reduction, causing a total Bitcoin outflow of 294,313 BTC.
Furthermore, industry executives appear optimistic. Brad Garlinghouse, CEO of Ripple, anticipates that the spot ETFs and upcoming Bitcoin halving will double the overall crypto market value this year. Communicating with CNBC on April 7, he expressed his optimism for the macro trends driven by ETFs: "I'm very optimistic. I think the macro trends, the big picture things like the ETFs, they’re driving for the first time real institutional money,”.
Published At
4/8/2024 8:40:36 AM
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