As the Bitcoin Halving draws near, there’s growing optimism among investors about Bitcoin’s potential price increase. This anticipation has led investors to accumulate Bitcoin-linked investments. An example of these investments is a Bitcoin Leveraged Exchange-Traded Fund (ETF).
Bitcoin Leveraged ETFs Gain Traction
Based on Forbes’ report, Volatility Shares, an ETF provider from Palm Beach Gardens, Florida, introduced the 2X Bitcoin Strategy ETF (BITX) in 2019. Lately, this ETF has taken the lead as the largest holder of bitcoin futures contracts at the Chicago Mercantile Exchange (CME).
In Q1, the largest Bitcoin futures ETF experienced a remarkable 135% growth, surpassing the 67% average increase seen by other Bitcoin spot ETFs.
Investors Hoard Assets Ahead of Bitcoin Halving
With the upcoming Bitcoin Halving generating much excitement, investors have been amassing Bitcoins. A clear illustration of this trend can be seen in Marathon Digital’s Bitcoin wallet.
Discovered recently were Marathon Digital’s Bitcoin wallets, holding over 23 addresses and approximately $1.1 billion worth of Bitcoin. In 2023, these on-chain wallets yielded around $387.5 million through mining about 12,85K Bitcoins. The unearthing of Marathon Digital’s Bitcoin stash occurred just prior to Bitcoin’s halving event, leading to a significant surge in the demand for BTC ETFs.
Bitcoin ETF Hype Rises Ahead of Halving
Before the Bitcoin halving, an increase in the number of coins coming into circulation may indicate that investors are stockpiling the cryptocurrency in preparation for the upcoming code update. Those predicting a price surge following the halving are maintaining or even boosting their Bitcoin holdings.
Market participants are hoarding Bitcoin and pushing for BTC ETFs in anticipation of the upcoming halving. Despite market fluctuations, significant investors, known as “Bitcoin whales,” have been purchasing large quantities of cryptocurrency. Historical data suggests that after a code update during a Bitcoin halving, there is often an imbalance between supply and demand. With heightened demand and increasing prices, this imbalance can lead to a bull market for Bitcoin.
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2024-04-14 00:39