On Tuesday, Gayatri Choudry, a quantitative research analyst at Bitwise Asset Management, stated that the demand for US spot Bitcoin exchange-traded funds (ETFs) significantly increased. Because of the magnitude of this surge, it exceeded the daily supply produced by miners by an astounding 614%.
US BTC ETFs are experiencing a demand that far surpasses the new supply of BTC by a factor of 7.
— Gayatri
Bitcoin exchange-traded funds (ETFs) are gaining traction, signaling a rising interest among institutional and retail investors to tap into the digital asset without the need to directly handle Bitcoin.
ETFs provide a convenient and regulated avenue for investors to partake in the potential gains from Bitcoin’s price fluctuations while mitigating certain risks associated with direct ownership and custody of the cryptocurrency.
This trend bodes well for the market, fostering a sense of optimism among investors.
Why Is Everyone Looking Forward to the Bitcoin Halving and What Will It Affect?
The block reward will be reduced from 6.25 BTC to 3.125 BTC as a result of the upcoming Bitcoin halving, which is scheduled to take place in less than a month. The significance of this event lies in the fact that it effectively reduces the rate at which new Bitcoin is produced by as much as fifty percent, which will ultimately result in a gradual increase in the scarcity of Bitcoin over time.
The amount of bitcoin that is currently available on the market is rapidly decreasing as a result of the growth in popularity of Bitcoin exchange-traded funds (ETFs) and the limited supply of bitcoin. And that’s when it pays to find the best moments to buy using Crypto Innovate Bot and make good deals.
It is possible to attribute the surge in the price of Bitcoin this year to the growing demand for Bitcoin exchange-traded funds (ETFs) as well as the upcoming halving of the Bitcoin supply. From the beginning of the year until the present, Bitcoin has seen a remarkable increase of 55%.
From the moment that BlackRock initially submitted its application for a Bitcoin exchange-traded fund (ETF) to the United States Securities and Exchange Commission, the price of Bitcoin has experienced a remarkable 113% increase.
Bitcoin Holders Are Counting on Its Rapid Growth
The response that Bitcoin will have to the upcoming halving event is something that traders and investors are eagerly anticipating.
During this particular market cycle, the price of Bitcoin has already reached a new record high prior to the halving, which makes this specific market cycle unique. In the past, it would typically take a couple of months for the supply shock’ to produce an increase in the price of Bitcoin following an event that involved halving the supply of the cryptocurrency.
On the other hand, at the moment, the demand for spot Bitcoin exchange-traded funds (ETFs) is consistently growing, which has resulted in a significant supply shock for Bitcoin. A further point to consider is that the daily supply of Bitcoin is on the verge of being cut in half.
