Bitcoin Halving Spurs Surge in BTC ETFs

Investors are increasingly bullish on Bitcoin as they anticipate a potential bull run following Bitcoin halving.

As the Bitcoin halving date approaches, investors have become increasingly bullish on the cryptocurrency.

In anticipation of a potential bull run following the halving, investors have accumulated Bitcoin-related assets. Such an asset is the Bitcoin-leveraged ETF.

Volatility Shares, a Palm Beach Gardens, Florida-based exchange-traded fund (ETF) issuer that specialises in inverse and leveraged ETFs, introduced the 2X Bitcoin Strategy ETF (BITX) in 2019, per Forbes.

It has emerged as the preeminent holder of bitcoin futures contracts on the Chicago Mercantile Exchange (CME) in recent weeks.

This Bitcoin futures ETF, which is presently the largest of its kind, generated a return of 135% in the first quarter, which is double that of spot Bitcoin ETFs.

Marathon Digital’s Wallet Discovery Amplifies Bitcoin Halving Excitement

Ahead of the eagerly awaited Bitcoin halving, investors have accumulated BTC assets. The wallet developed by Marathon Digital is a prime example.

Recently, the wallets of Marathon Digital, which contained over $1.1 billion in Bitcoin and 23 addresses, were discovered.

Through the processing of 12,85K Bitcoins in 2023, these on-chain wallets generated revenue of $387.5 million. The revelation of the Marathon Wallet occurred just prior to the halving of Bitcoin, which sparked a significant surge in interest surrounding BTC ETFs.

A surge in inflows immediately preceding the halving suggests that Bitcoin holders are likely stockpiling the coin in anticipation of the code update. Those anticipating a bull run following the division maintain robust BTC profiles.

Market participants are accumulating Bitcoin and vying for BTC ETFs primarily due to the impending halving. Despite the recent market volatility, Bitcoin billionaires have been engaged in the active purchase of vast quantities of the cryptocurrency.

Prior Bitcoin halvings have demonstrated that supply and demand typically become unbalanced after a code upgrade. As a result of the escalation in price and demand, Bitcoin experiences a bull run.