Saturday Newsletter

Explore the latest trends, gain valuable insights, and stay informed in the dynamic cryptocurrency ecosystem.

20 April 2024

Investments in the United States exchange-traded funds (ETFs) market saw a net positive inflow right before the Bitcoin halving, following five consecutive days of outflows.

As the market anticipates a rise in value post-halving, strategies worldwide recommended adding Bitcoin to existing portfolios. The Bitcoin ETF market embraced this strategy, ending an outflow streak dating back to April 12.

According to data from Farside, the U.S. Bitcoin ETF ecosystem experienced outflows for five straight days between April 12 and 18, mainly due to reduced contributions from major players.

This trend was largely influenced by the Grayscale Bitcoin Trust ETF (GBTC), which has seen consistent investment losses since January when the Securities and Exchange Commission (SEC) approved spot Bitcoin ETFs.

However, on April 19, five of the 10 approved ETFs recorded positive inflows that outweighed the GBTC outflows, bringing a total of $30.4 million into the market.

Negating cumulative outflows of $47.6 million from GBTC ($45.8 million) and Fidelity Wise Origin Bitcoin Fund (FBTC) ($1.8 million), Fidelity Wise Origin Bitcoin Fund (FBTC) generated $54.8 million right before the Bitcoin halving event began.

Other key inflow contributors included the Bitwise Bitcoin ETF (BITB) with $4.9 million, ARK 21Shares Bitcoin ETF (ARKB) with $12.5 million, Invesco Galaxy Bitcoin ETF (BTCO) with $3.9 million, and Franklin Bitcoin ETF (EZBC) with $1.9 million.

The previous Bitcoin halving took place on May 11, 2020, when Bitcoin’s market value was approximately $8,500. Since then, the asset’s value has appreciated to around $65,000 over four years, according to data from Cointelegraph Markets Pro and TradingView.

Bitcoin block 840,000 triggered the fourth-ever Bitcoin halving event on April 20 at 12:09 am UTC, temporarily increasing network fees due to high demand.

As a result, Bitcoin users spent an estimated 37.7 BTC in fees — roughly $2.4 million at current prices — to secure their share of limited space on the fourth-ever Bitcoin halving block.