Spot Bitcoin exchange-traded fund (ETF) flows are likely to remain strong until Bitcoin halves later this month, according to online analytics firm Santiment.
Santiment suggested that it is “probably a foregone conclusion” that strong ETF activity will continue, leading to Bitcoin’s halving in about two weeks.
Related: ETF May Boosting Bitcoin Price Up to $100K: 5 Reasons
The blockchain data company noted that Bitcoin ETF volume has not slowed since the asset hit an all-time high in mid-March, adding: “Trader activity is still noticeably higher than the turning point that began in late February following an influx of individual investors.” trading has begun” in X’s message on April 8th.
Happy Halving Anniversary
The Bitcoin halving event, which occurs every four years, is estimated to take place on April 20th. Lucas Kili from Yield App recently suggested that accumulating Bitcoin through an ETF could reduce the likelihood of major swings post-halving.
According to BitMEX Research, the Bitwise Bitcoin ETF (BITB) has attracted the fourth-largest inflow of $1.11 billion since the launch of spot Bitcoin ETFs seven weeks ago.
On February 28th, the inflow reached $676.8 million, marking a new historical peak for the ecosystem. IBIT from BlackRock and FBTC from Fidelity lead with inflows of $7.1 billion and $4.7 billion respectively. Farside Investors reported an increase in Bitcoin ETF inflows at the end of last week: on April 4th and 5th, there was a net inflow of over $200 million in just two days.
This followed a couple of slow days earlier in the week, with an outflow of $85.7 million on April 1st, which seemed to be a trend reversal after several strong days at the end of March.
Great Bitcoin ETF Upcoming Boom
According to Santiment, the daily trading volume among the top seven ETFs was $3.19 billion. However, “it will be interesting to see whether there will be an immediate decline in ETF volumes and on-chain volumes after this,” they added.
Bitwise suggests that spot Bitcoin exchange-traded funds (ETFs) could soon see “an even bigger wave” of institutional capital once “major financial centers” begin offering Bitcoin (BTC) ETF trading.
“I think we’ll see another wave over the next couple of months as we start to see major brokerage firms activate,” explained Matt Hougan, Bitwise’s Chief Investment Officer, in a CNBC interview on February 29th, noting that the initial wave of Bitcoin ETF interest is coming primarily from retail traders, hedge funds, and independent financial advisors.
“So, we’ll see the next wave of institutional capital,” Hougan said, calling ETFs the “Bitcoin IPO moment.”
However, it’s currently available only to clients who request products, Bloomberg reported, citing people familiar with the matter.
Morgan Stanley is also reportedly considering placing a spot Bitcoin ETF on its brokerage platform.
The supply and demand dynamics are simply “off the charts,” said Bitwise’s Chief Investment Officer Matt Hougan about the number of Bitcoin ETFs being purchased relative to the Bitcoins mined daily and the upcoming halving event.
“Too much demand and not enough supply.” Hougan suggests that the next wave of institutional interest could push the price of Bitcoin “significantly higher.”
When asked how high, Hougan said that Bitcoin could surpass Bitwise’s initial 2024 forecast of $80,000 and reach levels between $100,000 to $200,000 or even higher.
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Despite some fluctuations in ETF volumes earlier in the month, the overall trend indicates sustained interest from institutional and retail investors alike. Analysts anticipate that the enthusiasm surrounding Bitcoin ETFs will persist beyond the halving, with expectations of even greater institutional capital entering the market.
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