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Santiment Predicts Bursting Activity Across Bitcoin ETFs as the Halving Approaches

Robust Bitcoin ETF activity expected to persist until the halving

While the approval of a Bitcoin ETF has sent waves through the cryptocurrency market, analysts are now eagerly watching how the upcoming Bitcoin halving will impact this newly established financial product.

Key takeaways:

  1. On-chain analytics firm Santiment predicts that spot Bitcoin ETF flows will remain high until the Bitcoin halving event in mid-April.
  2. Bitcoin ETF volume has remained notably high since the asset reached an all-time high in March, with $3.19 billion in daily volume among the top seven ETFs.
  3. Despite consistent outflows from Grayscale's GBTC fund, industry executives like Ripple CEO Brad Garlinghouse remain optimistic about the overall crypto market growth, driven by spot ETFs and the halving.

Santiment, an on-chain analytics firm, has observed that spot Bitcoin exchange-traded fund (ETF) flows are likely to remain high until the Bitcoin halving event, which is estimated to occur on April 20. The firm noted that Bitcoin ETF volume has not slowed down since the asset reached an all-time high in mid-March, stating: 

"Trader activity is still notably higher than the turning point that began in late February after an influx of individual trading began."

The blockchain data firm speculated that it is a "likely foregone conclusion" that the high ETF activity will persist leading up to the halving. With $3.19 billion in daily volume among the top seven ETFs, Santiment mentioned that it would be interesting to observe whether a drop-off in both ETF and on-chain volume will occur directly after the event.

Recent trends in Bitcoin ETF flows

Spot Bitcoin ETF volumes experienced a significant surge in March, reaching $111 billion and nearly tripling the volume from the previous month. This highlights the consistent interest in these products. According to Farside Investors, Bitcoin ETF inflows picked up at the end of last week, with two days of more than $200 million in net inflow on April 4 and 5.

However, Grayscale's GBTC fund has been consistently experiencing outflows every trading day since its conversion to a spot ETF in mid-January. Last week alone, the firm's fund saw $738 million in outflows, bringing the total amount of BTC outflow from the product to 294,313 BTC.

Despite the mixed trends in ETF flows, industry executives remain optimistic about the overall growth of the crypto market. Ripple CEO Brad Garlinghouse predicts that the total crypto market value will double this year, primarily driven by spot ETFs and the Bitcoin halving. In a CNBC interview on April 7, Garlinghouse stated: 

"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."