In three weeks, institutions will receive 3.3% of the total supply of Bitcoin
The introduction of Bitcoin Exchange Traded Funds (ETFs) has sparked discussions about the long-term prospects of Bitcoin and its supply. Although it did not have an immediate effect on the price, the approval caused a change, with institutional bodies offering Bitcoin ETFs to increase the digital asset.
The world's largest asset manager, BlackRock, is among the participating institutions, raising hopes that the increased participation of retail investors in the Bitcoin ETF will contribute to future price gains.
Bitcoin ETF indicators strengthen the supply of Bitcoin
According to the latest report, the combined 11 Bitcoin ETF indicators hold approximately 3.3% of the current supply of Bitcoins.
Recently approved Bitcoin ETF indicators include Greyscale, BlackRock, Fidelity, Franklin Templeton, Invesco, VanEyck, WisdomTree, Hashdex, BitWise, Valkyrie and BZX.
According to recent data from Ycharts, there are currently 19.61 million Bitcoins in circulating supply.
Yet, within the crypto industry, speculation abounds about the potential impact of Bitcoin's upcoming halving in April on both price and supply.
This event, which occurs every four years, involves halving the mining rewards, thereby slowing down the rate at which new coins are created and reducing the total supply.
At the time of publication, the value of Bitcoin is $42,062.
Read more: What is a Bitcoin ETF?
Bitcoin ETFs have not lived up to initial expectations.
On January 10, the SEC greenlit 11 spot Bitcoin ETF applications, prompting expectations of a recent price increase.
Contrary to expectations, the price of Bitcoin has dropped by around 10% since its approval.
On January 16, SEC Chairman Gary Gensler made an irony by approving spot Bitcoin ETFs. He believes that such financial products contradict the principles of Bitcoin by promoting the centralization of the digital asset.
Gensler warned that this decision could fuel speculation and worsen an already volatile market.
Read more: Who will have the most Bitcoins in 2024?
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