Does Splicing feature actually break the on chain BTC trail?

[pawanjain]

I have been looking into the Phonenix wallet's splicing feature and wanted to know whether it is really effective to break the on chain BTC trail.

Here's the scenario:
1. Send on chain BTC (Address 1) to a Phoenix wallet deposit address. This triggers an on chain splice-in transaction that locks the funds into a Lightning channel.

2. The funds sit within the Lightnig channel as long as you keep it there.

3. Withdraw the funds from Phoenix wallet to another on chain address (Address 2), which triggers an on chain splice-out.

Phoenix wallet often batches these splice transactions with other users to save on transaction fees which adds some complexity to the transaction graph but does it actually hide our transaction trail?
Does this batching and off-chain routing actually break the BTC transaction trail or can blockchain analytics tools or anyone else easily track the trail back to our initial transaction ?

[PrivacyG]

Splicing alone does NOT break the chain!  When Phoenix integrates blinded paths it will be a different story, but I looked them up and I believe that is still in the works?  Splicing leaves on chain foot prints which can be analyzed and eventually linked.

Edit.  What the hell did I initially write!

[NotATether]

You're keeping the funds in a single LN channel operated by your wallet software and ACINQ. How do you think that's private?

If you wanted to make this better, you could transfer the funds to different recipients with completely different channels a few times, merge them later, and then reverse-submarine swap. Do not use channels from the same counterparty!