The demand for US spot Bitcoin ETFs surged significantly on Tuesday, outpacing the new supply created daily by miners by a remarkable 614%, according to Gayatri Choudry, Quantitative Research Analyst at Bitwise Asset Management.
Demand for US BTC ETFs surpasses supply of BTC by 7x pic.twitter.com/OCU5D19rpf
— Gayatri (@GayatriPC_) March 27, 2024
Bitcoin ETFs are in high demand because institutional investors and retail investors want to gain exposure to digital assets without managing them themselves. The ETFs are a convenient, regulated and safe way to gain exposure to the Bitcoin price movement without having the risk of direct ownership or custody.
You can also find out more about the following: Bitcoin halvingThis event, which is scheduled for less than one month from now, will lower the block reward to 3,125 BTC, down from 6,25 BTC. It is significant that the amount of bitcoins generated will be reduced by half. BTC is therefore becoming more scarce. The market for bitcoin is getting scarcer as demand continues to increase and new supply outpaces it.
Bitcoin is up 55% this year. This has been attributed to the combination of the rising demand for Bitcoin-based ETFs, and the upcoming Bitcoin halving. BlackRock initially filed its spot Bitcoin ETF application with the US Securities and Exchange Commission, BTC has risen over 173%.
Participants in the market are still eager to learn how Bitcoin reacts to its upcoming halving. It is the only time that Bitcoin has ever experienced a price increase before a halving. In the past, a price increase after a Bitcoin halving would not happen for several months. With the demand from Bitcoin spot ETFs increasing without an end in sight and Bitcoin already having experienced a large supply shock, it is only a matter of time before new BTC are cut in halves.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: bitcoinmagazine.com
