Get ready for a significant shift in the crypto landscape! Bitcoin ETFs are on a trajectory to secure over 10% of the total Bitcoin supply by the third quarter of this year. This insight, provided by the sharp analysts at Crypto Intelligence, underscores the increasing influence of spot Bitcoin ETFs in the market.
Why is this important? Well, it hinges on the expectation that applications for Ether spot ETFs in the US might not get the green light in the near term. Should these Ether ETFs face rejection, the spotlight remains firmly on Bitcoin ETFs, potentially boosting their demand as they become the primary crypto product for investors and institutions alike.
However, it’s not just about exclusivity. The dynamic between Ether and Bitcoin is fascinating. With Ether adopting a deflationary approach and Bitcoin’s supply still expanding (albeit at a slowing rate post-April halving), investor preferences could significantly shift, especially with Bitcoin ETFs playing a central role in the market.
Already holding more than 4% of the entire 21 million BTC that will ever be mined, these Bitcoin ETFs are not just passive observers. They are active market participants, with their growing influence potentially leading to a supply crunch. Such a scenario could catapult the price of Bitcoin to soar beyond the $120,000 threshold.
The impact of this trend is already visible, with Bitcoin showcasing remarkable gains, currently trading near the $73,000 mark. Ethereum has also seen a price uptick, crossing the $4,100 mark, though it’s still in the race to reach new heights.
