Spot Bitcoin exchange-traded fund (ETF) flows are likely to remain high until the Bitcoin halving at the end of this month, according to on-chain analytics firm Santiment.
The blockchain data firm observed that Bitcoin ETF volume has not slowed down since hitting an all-time high in mid-March. to add “Trader activity remains significantly higher than the tipping point that began in late February when the influx of retail trading began,” he said in an April 8 post on X.
Santiment went on to predict that it would be an “unexpected conclusion” that the ETF’s high activity would continue until Bitcoin’s halving, which is about two weeks away.
The once-every-four-year Bitcoin halving is predicted to occur on April 20th.
The daily volume among the top seven ETFs was $3.19 billion, according to Santiment. However, he added, “It will be interesting to see if a decline in ETF volume and on-chain volume occurs shortly thereafter.”
Lucas Kiely of Yield App recently suggested that accumulating Bitcoin through ETFs could reduce the likelihood of large swings after the halving.
Spot Bitcoin ETF volume surged to $111 billion in March, nearly triple the previous month’s volume, highlighting consistent interest in the product.
Inflows into Bitcoin ETFs accelerated over the weekend, with net inflows exceeding $200 million in two days on April 4th and 5th, according to Pharcyde Investors.
Following lows in the first few days of the week, $85.7 million was outflowed on April 1st, in what appeared to be a reversal of the strong days in late March.
Since Grayscale converted to a spot ETF in mid-January, it has experienced consistent outflows every business day, continuing to push down the aggregate numbers. Last week, the company’s GBTC fund shed $738 million, bringing the total BTC outflow from the product to 294,313 BTC.
Related: Bitcoin ETFs set for “even bigger waves” in coming months: Bitwise
But industry executives remain confident. Ripple CEO Brad Garlinghouse has predicted that the total value of the crypto market will double this year, mainly due to spot ETFs and the halving of Bitcoin.
“I’m very optimistic. I think macro trends, big picture things like ETFs are moving real institutional money for the first time,” he said. Said CNBC on April 7th.
magazine: The Wolf of All Street is concerned about a world where Bitcoin reaches $1 million: Hall of Fire
