Spot Bitcoin ETFs have attracted over $12 billion in cumulative net inflows in just three months of trading, while Grayscale GBTC liquidations are ongoing.

Data from SoSoValue tracking spot Bitcoin (BTC) ETF activity revealed daily net inflows of over $39.4 million. Wall Street giant BlackRock saw the largest influx among nine new funds, with traders investing $150 million in the firm’s iShares Bitcoin ETF (IBIT).

BlackRock currently manages nearly $17 billion in assets under management (AUM), making it the industry leader. The closest competitor, excluding Grayscale, is Fidelity with $7.6 billion in AUM.

Despite Grayscale experiencing more outflows, ARK 21Shares’ product surpassed GBTC with over $87 million in exits. Grayscale’s Bitcoin funds, on the other hand, saw $81.8 million in net outflows.

On April 2, one of the new spot BTC ETFs surpassed GBTC for outflows for the first time. ETF expert Eric Balchunas downplayed the significance of this event, citing it as inevitable and overstated, especially on social media.

Eric Balchunas tweeted: “Seeing some of CT up in arms over $ARKB having an outflow day, which really shows the greedy and short-sighted nature of some of the folks in this space tbh. Pls let me offer some perspective: 1. ETFs see outflows, even Vanguard’s, it’s part of life, but overall they tend to be…”

Bitcoin prices surged above $66,000 shortly after the fourth halving, reducing new BTC supply and maintaining scarcity. Bitget’s Chief Analyst, Ryan Lee, highlighted the impact of spot Bitcoin ETF approvals and a shift in market dynamics on this halving cycle.

Institutional investors are now taking the lead role, with retail buyers playing a supporting role, in contrast to previous cycles driven by VC and retail investors. The introduction of spot Bitcoin ETFs is reshaping the narrative ahead of the upcoming BTC halving event.

According to Ryan Lee, pent-up retail demand, coupled with new institutional players, has driven BTC to new all-time highs. Lee predicts that BTC prices could climb even higher due to changes in halving supply dynamics.

As Bitcoin exchange balances dwindle rapidly, a supply crunch is imminent. The halving event will cut the current supply rate of 900 BTC per day in half, potentially pushing the coin to new highs in the coming weeks and months.

Stay informed about Bitcoin’s halving hype and how whales are preparing for the upcoming shift in the market.

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