Santiment Says Bitcoin ETF Activity To Stay Robust Until Halving

Santiment Says Bitcoin ETF Activity To Stay Robust Until Halving

According to Santiment, the spot bitcoin exchange-traded funds (ETFs) will continue to record higher flows until the Bitcoin halving that is expected to happen later this month.

The on-chain analytics firm observed that since mid-March when Bitcoin hit an all-time high, there has not been a slowdown in the Bitcoin ETF volume.

High activity

It noted that the turning point had come in late February, but the trading activity for now was higher than this point as well.

The blockchain data firm speculated that it is a given that ETF activity would continue to remain high until the Bitcoin halving event expected in the next two weeks.

Occurring every four years, the Bitcoin halving event is expected to happen around April 20th. Santiment revealed that the top seven ETFs have recorded a daily volumes of about $3.19 billion.

However, the company added that it would be interesting to see if there is a decline in on-chain volume and ETF volume directly after the halving event.

It had been recently suggested that large swings in the price of bitcoin may be reduced after the halving due to the accumulation of Bitcoin through ETFs.

The flows

In March, the volumes of spot bitcoin ETFs had climbed to a whopping $111 billion, which was nearly triple the volume of a month earlier, which highlights the consistent interest in these products.

Farside Investors said that the end of last week had seen Bitcoin ETF inflows rise. On both April 4th and April 5th, there had been net inflows of about $200 million.

This came after there had been lows recorded earlier in the week with April 1st recording outflows of $85.7 million in what seemed to be a trend reversal from a strong few days recorded at the end of March.

The details

There have been consistent outflows recorded from the Grayscale ETF every day since its conversion in mid-January, which has continued to drag down the aggregate figures.

Last week saw the GBTC fund shed a total of $738 million, which means that the total outflow of BTC tokens from the ETF was about 294,313.

Nonetheless, this has not dampened the confidence of industry executives. Brad Garlinghouse, the CEO of Ripple Labs, expects the value of the crypto market to double this year.

He believes that the Bitcoin halving event and spot Bitcoin ETFs will boost the value of the crypto market.

Earlier in the week, he said that he was very optimistic because the macro trends and the big picture, which includes the ETFs, are driving institutional money into the market.

As interest in these investment products continues, the entire crypto market will likely benefit from it.

It should also be noted that companies that have launched a spot Bitcoin ETF have already submitted their applications for a spot Ethereum ETF as well.

This is not surprising, considering the success that spot Bitcoin ETFs have enjoyed since their launch, especially due to the rise in price of Bitcoin.