Bitcoin ETF issuers are increasing their holdings to 4.27% of BTC supply due to the crash to $61,000

There's no denying the start of Explore Bitcoin ETFs has done wonders for the price of Bitcoin and other cryptocurrencies in general. These ETFs now have unlocked institutional demand into the world's largest crypto asset to change the dynamic ahead of the next halving. On the other hand, recent tensions between Iran and Israel have caused Bitcoin to fall as low as $61,000 in the last 24 hours, wiping out weeks of price increases.

Bitcoin ETF Wallets Now Whale Addresses

Since the beginning of the year, institutional demand for Bitcoin has been increasing from issuers of the various spot Bitcoin ETFs. As on-chain analytics platform IntoTheBlock noted, these fund providers have been scooping up Bitcoin from everywhere and now hold 4.27% of the total BTC supply.

These whale wallets have now joined an extensive list of whales on the Bitcoin network who own together 11% of the total circulating supply.

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Unlike previous BTC halvings, this time there is a new source of demand from the traditional institutional sector.

The newly launched Bitcoin ETFs are increasing institutional demand, resulting in ETF wallets already accounting for 4.27% of Bitcoin supply! pic.twitter.com/volLU15Wgd

– IntoTheBlock (@intotheblock) April 13, 2024

It's worth mentioning BlackRock's IBIT and Fidelity's FBTC ETFs have positioned themselves as front-runners. Accordingly Data from BitMEX ResearchThese two spot ETFs now hold 405,749 BTC as of the close on April 12th.

This surge in institutional money has fueled Bitcoin’s meteoric rise rise to a new all-time high of $73,737, highlighting its potential as a mainstream asset class. However, a simmering conflict between Iran and Israel appears to be wiping out this month-long price rise. Bitcoin, in particular, saw a notable decline from $67,800 to $61,000 in the last 24 hours.

However, the fundamentals suggest that this price drop is temporary and the cryptocurrency is already recouping most of this loss. At the time of writing, Bitcoin is trading below the $65,000 price mark.

Bitcoin is currently trading at $64,330. Chart: TradingView

Change in halving dynamics

One of Such fundamentals indicate this to a stable Bitcoin Price increase in the coming months is the upcoming Bitcoin halving. Investors are getting closer and closer to the outcome of this halving as the Bitcoin blockchain is now less than 1,000 blocks away from the next event.

Past halvings alone have resulted in a rise in the price of Bitcoin in the days following the halving. Bitcoin saw a surge of over 7,000% in the months following the first halving in 2012. The July 2016 halving resulted in a 3,000% price increase in the following months. The most recent halving in May 2020 resulted in a rise of almost 1,000% in the following months.

As IntoTheBlock noted, the upcoming halving is different from the previous ones. Unlike the last three halvings, there is “a new source of demand from the institutional sector” through spot Bitcoin ETFs. A Repeat the last halving The results could see Bitcoin easily rise above the $100,000 price mark.

Featured image from Pixabay, chart from TradingView

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