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 institutional and retail investors in gaining exposure to Bitcoin without the hassle of managing the digital asset themselves.
With the Bitcoin halving just around the corner, where the block reward will be cut in half, making BTC more scarce over time, the combination of rising demand for Bitcoin ETFs and the impending halving has been driving the surge in Bitcoin’s price this year. Bitcoin is currently up over 55% year-to-date and has risen over 173% since BlackRock filed its spot Bitcoin ETF application with the US Securities and Exchange Commission.
Market participants are eagerly anticipating how Bitcoin will react to the upcoming halving, especially since this is the first market cycle in Bitcoin’s history where its price reached a new all-time high before the halving. With demand for Bitcoin ETFs showing no signs of slowing down, the digital asset has already experienced a significant supply shock, and the reduction in new supply per day is expected to further drive up its price.
