Spot Bitcoin exchange-traded fund (ETF) flows are likely to remain high until Bitcoin halving later this month, according to on-chain analytics firm Santiment.
Recent Bitcoin ETF inflows signal investor confidence
Blockchain Data’s company team sees that volumes for Bitcoin ETF remain constant after this particular asset climbs to an all-time high in mid-March. They claim: “Observation shows that an influx of high-profile individuals had started in late February and that trading activity has remained high ever since.”
Santiment stated that it is probable that this could be a forecast of the gradual increase of ETF volumes being traded 2 weeks before Bitcoin halving. The Bitcoin halving event happens every four years and is estimated to occur on April 20.
According to Santiment, this entails about $3.19 billion trade among the seven best ETFs.However, “it will be interesting to see whether a drop-off in ETF volume and on-chain volume will occur directly afterward,” it added. Lucas Kiely of Yield App recently suggested that the accumulation of Bitcoin via ETFs could reduce the likelihood of large swings after the halving.
Post-halving expectations
Spot Bitcoin ETF volumes soared to $111 billion in March, almost tripling the volume for the previous month, highlighting consistent interest in the 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. That followed a few low days earlier in the week with an $85.7 million outflow on April 1 in what appeared to be a trend reversal from a strong few days in late March.
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