Bitcoin (BTC) investments in the United States exchange-traded funds (ETFs) market experienced a positive inflow before the Bitcoin halving day, breaking a streak of five consecutive days of outflows. Investment strategies around the world recommended adding Bitcoin to portfolios in anticipation of a post-halving increase in market value. The Bitcoin ETF market followed this strategy and put an end to the outflow streak that began on April 12.
According to data from Farside, the U.S. Bitcoin ETF ecosystem saw outflows for five straight days from April 12 to 18, mainly due to the Grayscale Bitcoin Trust ETF (GBTC) shedding investments. This trend started in January when the Securities and Exchange Commission (SEC) approved spot Bitcoin ETFs.
However, on April 19, five out of the 10 approved ETFs recorded positive inflows that outweighed the GBTC outflows, bringing a total of $30.4 million into the market. When excluding the cumulative outflows of $47.6 million from GBTC and Fidelity Wise Origin Bitcoin Fund (FBTC), FBTC brought in $54.8 million just before the Bitcoin halving event.
Other contributors to the inflows include Bitwise Bitcoin ETF (BITB) at $4.9 million, ARK 21Shares Bitcoin ETF (ARKB) at $12.5 million, Invesco Galaxy Bitcoin ETF (BTCO) at $3.9 million, and Franklin Bitcoin ETF (EZBC) at $1.9 million.
The previous Bitcoin halving occurred on May 11, 2020, when the asset had a market value of approximately $8,500. However, the subsequent reduction in BTC issuance led to its value appreciating to around $65,000 in four years, according to data from Cointelegraph Markets Pro and TradingView.
The Bitcoin block 840,000 triggered the fourth-ever Bitcoin halving event on April 20, at 12:09 am UTC, which temporarily increased network fees due to high demand. As a result, Bitcoin users spent a significant amount of 37.7 BTC in fees, equivalent to just over $2.4 million, to secure space on the fourth-ever Bitcoin halving block.
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