Bitcoin spot index fund (ETF) flows are expected to remain strong until the Halving, scheduled for April 20. According to Santiment, a blockchain analytics firm, trader activity remains significantly higher than levels seen in late February.
Bitcoin ETF Rush Continues As Halving Approaches
Despite the record rise in Bitcoin prices in mid-March, interest in spot Bitcoin ETFs shows no signs of waning. On the contrary, the daily volume of the top 7 ETFs recently reached $3.19 billion.
In March, Bitcoin spot ETF volumes jumped to $111 billion, almost triple the previous month. Last week, after a slight drop in early April, entries have resumed with more than $200 million invested on April 4 and 5, according to Farside Investors.
Only Grayscale's GBTC fund weighs on the overall numbers, with consistent outflows since its conversion to an ETF in mid-January, totaling 294,313 BTC. But this doesn't seem to affect the overall market appetite.
Sustained momentum until Halving?
According to Santiment, this enthusiasm should continue until the next “Halving”, a key event which halves the creation of new Bitcoins every 4 years. This highly anticipated event could continue to attract flows into ETFs in the next two weeks.
However, Santiment questions the evolution of ETF volumes and the crypto market in general after this major event. The crypto world will therefore carefully monitor the figures to assess the strength of the trend.
Industry leaders, like Brad Garlinghouse, CEO of Ripple, remain very optimistic in any case. Counting on a doubling of the total value of cryptos this year, he sees spot ETFs and Halving as powerful engines to finally attract money from institutional investors.
In the short term, barring a sudden trend reversal, everything indicates that spot Bitcoin ETFs still have a bright future. But the resilience of this investor appetite will be tested from April 20, once the Halving has passed. Crypto markets could then enter a new era.
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