Bitcoin Halving Expected To Enhance ETF Opportunities In Cryptocurrency Sector: Report
Portfolio Pulse from Benzinga Neuro
The upcoming Bitcoin halving in April 2024 is expected to boost ETF opportunities in the cryptocurrency sector, according to a report by Canaccord Genuity. The halving, which reduces miner rewards by 50%, along with the approval of spot exchange-traded funds (ETFs) and a growing risk appetite, contributed to a 60% increase in Bitcoin's value in Q1 2024. The SEC's approval of 11 U.S. spot Bitcoin ETFs is seen as a positive development, potentially making spot ETFs a significant factor in Bitcoin's price action. However, the traditional impact of the halving may be diminishing due to the influx of institutional demand through Bitcoin ETFs.
March 28, 2024 | 12:17 pm
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The Bitcoin halving in April 2024 and the approval of 11 U.S. spot Bitcoin ETFs are expected to positively impact Bitcoin's value, despite potential changes in the traditional impact of halving events due to institutional demand.
The halving event is expected to reduce the supply of Bitcoin, traditionally leading to a price increase. The approval of spot Bitcoin ETFs introduces a new avenue for institutional and retail investment, potentially increasing demand. However, the influx of institutional demand through ETFs may alter the traditional supply-demand dynamics, making the exact impact of the halving uncertain.
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