Spot Bitcoin ETFs Garner Over $12 Billion in Net Inflows Within Three Months as Grayscale GBTC Liquidations Persist

Within just three months of trading, spot Bitcoin ETFs have amassed an impressive cumulative net inflow surpassing $12 billion, while Grayscale GBTC continues its liquidation trend.

Data from SoSoValue, tracking activity in spot Bitcoin (BTC) ETFs, indicates daily net inflows exceeding $39.4 million. Among the nine new funds, Wall Street titan BlackRock witnessed the largest influx, with traders allocating $150 million to the firm's iShares Bitcoin ETF (IBIT).

With nearly $17 billion in assets under management (AUM), BlackRock leads the pack, with its closest competitor, excluding Grayscale, being Fidelity, boasting $7.6 billion in AUM.

Despite Grayscale experiencing further outflows, ARK 21Shares' product surpassed GBTC with over $87 million in exits. Grayscale's Bitcoin funds, in contrast, saw net outflows amounting to $81.8 million.

April 2 marked the first day where any of the nine new spot BTC ETFs surpassed GBTC in outflows. Nevertheless, ETF expert Eric Balchunas suggests that this occurrence, though inevitable, has been somewhat exaggerated, particularly on social media platforms.

Impact of Spot Bitcoin ETFs on BTC Halving

Bitcoin prices surged above $66,000 in less than three weeks following the token's fourth halving. This event, which reduced the issuance of new BTC and maintained scarcity, addressed concerns regarding coin inflation.

Ryan Lee, Chief Analyst at Bitget, noted the distinctiveness of this halving cycle, attributing it to the approval of spot Bitcoin ETFs and a shift in primary market drivers. Lee emphasized the dominance of institutional investors in the current trend, with retail buyers playing a complementary role, contrasting previous bull cycles driven by VC and retail buyers.

The emergence of spot Bitcoin ETFs has reshaped the narrative ahead of the BTC halving event this month, servicing pent-up retail demand with institutional players. BTC reached new all-time highs, peaking at approximately $73,750 per CoinMarketCap. Lee anticipates further price increases owing to changes in halving supply dynamics, anticipating a supply crunch as Bitcoin balances on exchanges deplete rapidly.

With the halving event reducing the supply rate from 900 BTC per day to 450 BTC, Lee predicts deepening supply scarcity, potentially propelling BTC prices to new highs in the ensuing weeks and months.