The demand for US spot Bitcoin ETFs has skyrocketed, surpassing the new supply created daily by miners by an impressive 614%. This surge in demand reflects the increasing interest among both institutional and retail investors in gaining exposure to Bitcoin without the need to manage the digital asset themselves.
With the Bitcoin halving just around the corner, where the block reward will be reduced by half, the scarcity of Bitcoin is set to increase even further. This scarcity, combined with the growing demand for Bitcoin ETFs, has been driving the price of BTC up by over 55% year-to-date.
The upcoming halving is a significant event for the cryptocurrency market, as it will further reduce the rate at which new Bitcoin is generated, making the digital asset even scarcer. Market participants are eagerly anticipating how Bitcoin will react to this supply shock, especially as the demand for Bitcoin ETFs shows no signs of slowing down.
Overall, the surge in demand for Bitcoin ETFs and the impending halving have been key factors in driving Bitcoin’s price up this year. With the market eagerly watching how Bitcoin will perform post-halving, the future of the digital asset remains uncertain yet exciting.
