Spot Bitcoin ETFs saw $39m net inflows on April 2

Spot Bitcoin ETFs have drawn in over $12 billion in cumulative net inflows within three months of trading, while Grayscale GBTC liquidations continue. 

SoSoValue data tracking spot Bitcoin (BTC) ETF activity showed over $39.4 million daily net inflows. Wall Street stalwart BlackRock recorded the largest influx among nine new funds, as traders parked $150 million into the firm’s iShares Bitcoin ETF (IBIT). 

BlackRock commands nearly $17 billion in assets under management (AUM). The issuer’s closest competitor, excluding Grayscale, boasts $7.6 billion in AUM held by fellow tradfi juggernaut Fidelity. 

Although Grayscale proceeded with more outflows, ARK 21Shares’ product leapfrogged GBTC with over $87 million in exits. In comparison, Grayscale’s Bitcoin funds saw $81.8 million net outflows. 

April 2 marked the first day any of the nine new spot BTC ETFs outmatched GBTC for outflows. However, ETF expert Eric Balchunas said the occurrence was inevitable and overstated, mainly on social media.

Spot Bitcoin ETF impact on BTC halving

Bitcoin prices traded above $66,000 less than three weeks after the token’s fourth halving. This event reduced the amount of new BTC entering circulation and maintained scarcity by tackling coin inflation. 

Ryan Lee, Bitget’s Chief Analyst, told crypto.news that this cycle’s halving is especially different primarily due to the approval of spot Bitcoin ETFs and a shift in leading market drivers. 

The current trend leans strongly on institutional investors with retail buyers playing a complementary role, while previous bull cycles were driven by VC and retail buyers, The presence of spot Bitcoin ETF is changing the narrative ahead of the BTC halving event this month

Ryan Lee, Bitget chief analyst

Pent-up retail demand serviced by these new institutional players has been highlighted as a catalyst for BTC’s run to new all-time highs. The token peaked at around $73,750 per CoinMarketCap, and Lee opined that higher prices may be inbound thanks to the change in halving supply dynamics. 

A supply crunch is becoming a reality as Bitcoin balances on an exchange are getting depleted at a fast pace. With a current supply rate of 900 BTC per day, the halving event will reduce this to 450 BTC, deepening the supply scarcity that, in our humble estimation, could push the price of the coin to another new high in the weeks and months following the halving.

Ryan Lee, Bitget chief analyst