Spot Bitcoin exchange-traded fund (ETF) flows are expected to remain robust until the Bitcoin halving event later this month, as per the analysis by Santiment, an on-chain analytics firm.
Recent inflows into Bitcoin ETFs indicate that investors have confidence in the asset. Santiment’s data team has observed that volumes for Bitcoin ETFs have stayed steady even after the asset reached an all-time high in mid-March. They noted that a surge in high-profile individuals investing in Bitcoin started in late February, and trading activity has remained elevated ever since.
Santiment predicts that this trend could be an early indication of increasing ETF volumes leading up to the Bitcoin halving, which is scheduled to happen on April 20. They estimate that approximately $3.19 billion worth of trades will take place among the top seven ETFs during this period. However, Santiment also highlights the possibility of a drop-off in ETF and on-chain volumes immediately after the halving.
Lucas Kiely of Yield App recently suggested that the accumulation of Bitcoin through ETFs could potentially reduce the occurrence of significant price fluctuations post-halving.
In March, spot Bitcoin ETF volumes surged to $111 billion, nearly tripling the previous month’s volume, demonstrating sustained interest in these products. According to Farside Investors, Bitcoin ETF inflows picked up towards the end of last week, with two consecutive days of net inflows exceeding $200 million on April 4 and 5. This followed a few slower days earlier in the week, with an outflow of $85.7 million on April 1, indicating a reversal from the strong momentum experienced in late March.