Bitcoin exchange-traded fund (ETF) flows are expected to remain strong leading up to the Bitcoin halving later this month, as per Santiment, an on-chain analytics firm.
Recent inflows into Bitcoin ETFs indicate that investors have confidence in the cryptocurrency. Santiment’s data team has noticed that ETF volumes have remained steady since mid-March, when Bitcoin reached an all-time high. They noted that there has been an influx of high-profile individuals investing in Bitcoin since late February, and trading activity has remained high.
Santiment believes that this could be a sign of increasing ETF volumes in the two weeks leading up to the Bitcoin halving. The Bitcoin halving event occurs every four years and is expected to take place on April 20.
Santiment estimates that around $3.19 billion will be traded among the top seven ETFs. However, they are curious to see if there will be a drop-off in ETF volume and on-chain volume immediately following the halving. Lucas Kiely of Yield App has suggested that the accumulation of Bitcoin through ETFs may reduce the likelihood of significant price swings after the halving.
In March, spot Bitcoin ETF volumes reached $111 billion, nearly tripling the volume from the previous month. This indicates sustained interest in these products. According to Farside Investors, Bitcoin ETF inflows picked up at the end of last week, with two consecutive days of over $200 million in net inflow on April 4 and 5. This followed a few days of lower inflows earlier in the week, with an outflow of $85.7 million on April 1, suggesting a reversal in the trend after a strong period in late March.
