BITO - New Spot Bitcoin ETFs Are Crushing The Supply/Demand Balance

2024-04-04 10:25:00 ET

Summary

• The launch of 11 distinct spot bitcoin ETF strategies in the first quarter of 2024 has resulted in approximately $60 billion in assets under management, a historic success for ETF launches.
• The upcoming bitcoin halving event in April 2024, where the block reward paid to miners will decrease, suggests a potential shift in the supply/demand balance toward demand outpacing supply, which could lead to upward pressure on the price of bitcoin.
• ETF buying has outpaced the creation of new bitcoin since the launch of the ETFs, indicating increased investor interest in gaining exposure to bitcoin through familiar brokerage platforms.

By Christopher Gannatti, CFA

One of the biggest stories of the first quarter of 2024 in U.S. ETFs has been the launch of 11 distinct spot bitcoin strategies. January 11, 2024, is truly a date that will go down in ETF history, similar to the launch of SPDR's gold trust in 2004 ¹ or even SPDR's S&P 500 Index trust in 1993. ² ...

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