Bitcoin halving hype breaks week-long ETFs outflow streak

Before the Bitcoin halving event, there was a notable increase in investments in Bitcoin-related exchange-traded funds (ETFs) based in the US, marking a reversal after five successive days of outflows.

In response to expectations of Bitcoin’s value rising following the halving event, many investment plans advised investors to buy Bitcoin and incorporate it into their current investments. This suggestion was adopted by the Bitcoin ETF market, which put a stop to its previous trend of decreasing holdings, last seen on April 12.

Bitcoin halving hype breaks week-long ETFs outflow streak

Based on Farside’s findings, US Bitcoin ETF market experienced five consecutive withdrawal days from April 12 to 18. The primary reason for this trend was a reluctance of most participants to invest. The majority of the withdrawals can be linked back to the Grayscale Bitcoin Trust ETF (GBTC), which has been experiencing declining investments since January following the SEC’s approval of spot Bitcoin ETFs.

On April 19, despite GBTC experiencing outflows, a notable inflow of $30.4 million was recorded among five of the ten approved ETFs.

Before the Bitcoin halving event began, Fidelity Wise Origin Bitcoin Fund (FBTC) had a total inflow of $54.8 million, which more than offset the combined outflows of $45.8 million from GBTC and $1.8 million from FBTC.

Some other exchange-traded funds (ETFs) that contribute to the inflow of Bitcoin include Bitwise Bitcoin ETF (BITB), which brings in approximately $4.9 million, ARK 21Shares Bitcoin ETF (ARKB) with around $12.5 million, Invesco Galaxy Bitcoin ETF (BTCO) at about $3.9 million, and Franklin Bitcoin ETF (EZBC) adding $1.9 million.

Bitcoin halving hype breaks week-long ETFs outflow streak

Around May 11, 2020, the previous Bitcoin halving occurred while its market value was approximately $8,500. Subsequently, the decrease in new BTC supply led to an increase in its worth, reaching around $65,000 within a span of four years based on data from CryptoMoon Markets Pro and TradingView.

At around 12:09 am UTC on April 20, when block 840,000 of the Bitcoin network was mined, marking the fourth Bitcoin halving, there was a temporary increase in network fees because of heightened interest and demand.

Bitcoin halving hype breaks week-long ETFs outflow streak

In total, Bitcoin users paid approximately $2.4 million in fees, equivalent to 37.7 BTC, to secure a place in the fourth Bitcoin halving’s limited block.

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2024-04-20 23:08