Cryptocurrency NewsSpot Bitcoin ETFs Control 3.3% of Total Supply

Spot Bitcoin ETFs Control 3.3% of Total Supply

The launch of Bitcoin exchange-traded funds (ETFs) has ignited discussions about Bitcoin’s future and its availability. While its price hasn’t seen immediate changes, the green light for Bitcoin ETFs has led to a notable shift, with major financial institutions like BlackRock, the biggest asset manager globally, starting to gather more Bitcoin through these ETFs.

This move has sparked optimism that the growing interest from everyday investors in Bitcoin ETFs could drive up its price in the future.

A recent analysis revealed that the 11 entities that have been approved to offer spot Bitcoin ETFs now control about 3.3% of all Bitcoin currently available.

The list of these newly approved Bitcoin ETF providers includes big names like Grayscale, BlackRock, Fidelity, and several others, indicating a significant interest from reputable financial institutions.

As of the latest figures, there are 19.61 million Bitcoins in circulation.

However, the crypto community is buzzing with predictions about how the forthcoming Bitcoin halving event in April might affect both its price and availability. This event, which cuts the reward for mining Bitcoin in half every four years, is expected to decrease the pace at which new Bitcoins are created, thus limiting the supply.

On January 10, the SEC approved 11 applications for spot Bitcoin ETFs, raising anticipations of a price increase. Yet, contrary to expectations, Bitcoin’s value dropped by about 10% after the approval.

On January 16, SEC Chairman Gary Gensler commented on the approval of spot Bitcoin ETFs, suggesting it introduces a level of centralization to Bitcoin that contradicts its founding principles. He warned that this could lead to more speculation and increase the volatility of an already unpredictable market.

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Disclaimer:

This blog is for educational purposes only. The information we offer is not investment advice. Please always do your own research before investing. Any opinions expressed in this article are not a recommendation that any particular cryptocurrency (or cryptocurrency token/asset/index), cryptocurrency portfolio, transaction, or investment strategy is appropriate for any particular individual.

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