- Bitcoin’s post-half-life saw a 2.31% dip, but ETF inflows soared, boosting investor confidence
- A potential expansion of crypto ETFs beyond Bitcoin and Ethereum could drive mainstream adoption
Looks like Bitcoin [BTC] halving brought its own surprises! After all the hype surrounding Bitcoin’s halving, BTC hit a bumpy road, dropping 2.31% in just 24 hours. This is despite the Bitcoin ETF market seeing such a significant change. After five days of outflows, there was a sudden influx of positive net inflows just before the halving day.
According to Farside Investors data, five out of 10 ETFs recorded positive inflows totaling $59.7 million.
Source: Farside Investors
This underscored growing confidence in Bitcoin’s pre- and post-halving performance among investors in the ETF space.
Expansion of ETFs leads to crypto mainstream adoption
Discussing the potential expansion of the crypto ETF space beyond Bitcoin and Ethereum [ETH], Sergei NazarovCo-founder of Chainlink, in a recent interview claimed,
“I think the next step is more ETFs on coins other than Bitcoin and Ethereum. So I think the ETF momentum will continue this year and just grow and grow and grow.”
His comments highlighted the potential of ETFs to drive broader adoption of digital assets and promote mainstream integration of Web3 technologies.
Here it is worth noting that in a separate interview, Anthony Scaramuccifounder of SkyBridge Capital, also weighed in on this topic.
“Bitco is on an adoption curve.”
He added,
“You won’t see this inflation hedge, or a mark-up of value as other experts say, until you have over a billion users. So right now it’s going to be a lot more volatile than people want.
All eyes on Spot Ethereum ETFs
Thanks to Hong Kong’s recent approval of Bitcoin and Ethereum ETFs, positive steps are being taken towards mainstream adoption. While U.S.-based ETFs have amassed nearly $60 billion in assets since their launch, the success prospects of the new ETFs in Hong Kong vary.
Echoing similar sentiments, senior Bloomberg ETF analyst Eric Balchunas recently commented,
“The addition of BTC ETFs by other countries is undoubtedly additive, but it is a piece of cake compared to the mighty US market.”
All of this leads us to a question: will the SEC reject spot Ethereum ETF applications?
In response to the above question, Jupiter Zheng, Head of Research at Hashkey Capital, replied:
“If the ETF is rejected, it won’t be as bearish because the market isn’t taking it into account yet. And we still have Bitcoin ETFs as an entry point for traditional funds.”
However, what dictates access to the crypto market? According to Nazarov, adoption does apply.
According to the director, the crypto industry should focus on improving usability, scalability, connectivity and privacy to address concerns about mainstream adoption. Improvements in these areas would not only attract wider adoption but also move the industry forward by pushing its boundaries, he concluded.