Spot Bitcoin ETF Flows Expected to Maintain Strength Ahead of Halving as BTC Taps $72K

Spot Bitcoin exchange-traded funds (ETFs) have pushed BTC to record highs this year. The inflows via these investment vehicles have been strong.

And this trend is likely to continue with the upcoming Bitcoin halving event on April 19th nearing.

Investor Interest in Bitcoin ETF Remains Robust

According to Santiment’s latest analysis , the volume of spot Bitcoin ETFs has remained strong , showing no signs of slowing down even four weeks after reaching its all-time high.

Interestingly, trader activity continues to surpass levels seen since the turning point in late February when individual trading surged, and it has continued since then. This particularly holds true for popular ETFs such as Grayscale’s GBTC, BlackRock’s IBIT, Fidelity’s FBTC, Ark Invest’s and 21Shares’ ARKB, Invesco Galaxy’s BTCO, Bitwise’s BITB, and VanEck’s HODL.

Santiment’s data revealed that these top seven spot Bitcoin ETFs recorded a trading volume of $3.83 billion on February 25th, marked as a turning point. Fast-forward to April, the daily volume for these funds was found to be at $3.19 billion.

“Among $GBTC, $IBIT, $FBTC, $ARKB, $BTCO, $BITB, and $HODL, trader activity is still notably higher than the turning point that began in late February after an influx of individual trading began (and hasn’t stopped since).”

With the upcoming halving less than two weeks away, the crypto analytic platform anticipates that the ongoing heightened activity will persist. However, there is speculation regarding whether a subsequent drop-off in ETF volume and on-chain activity will occur immediately afterward.

BlackRock, Fidelity Add More BTC

A similar sentiment was echoed by Apollo Sats’ founder Thomas Fahrer, who highlighted the significant BTC purchases made by major institutions, with Blackrock acquiring 12,000 Bitcoin and Fidelity purchasing 6,000 Bitcoin in the previous week alone.

Despite being three months since the launch of spot Bitcoin ETFs for the first time ever in the US, these institutional players show no signs of slowing down their accumulation.

While Grayscale’s GBTC has been selling, Fahrer emphasized that their selling activity is finite. Once their selling pressure comes down, the founder anticipated that a fierce FOMO rally would ensue, triggering Bitcoin’s price to new highs once again, with $100,000 as a crucial target.

As of now, BTC’s price has reacted well to these latest developments and jumped past $72,000 earlier today for the first time in nearly a month.