NewsletterBitcoin Halving Hype Spurs Investors’ 2X BTC Leveraged ETF Bet
Highlights
- The hope of a possible bull run post-halving has resulted in investors hoarding Bitcoin-related assets like BTC leveraged ETF.
- As the highly anticipated Bitcoin Halving approaches, investors have been piling up BTC assets.
- A surge in inflows just before the halving implies that BTC holders are probably hoarding the cryptocurrency in anticipation of the code upgrade.
With the approaching Bitcoin Halving, investors have been bullish on Bitcoin. The hope of a possible bull run post-halving has resulted in investors hoarding Bitcoin-related assets. One such asset is BTC leveraged ETF.
Bitcoin Leveraged ETFs Gain Traction
According to Forbes, with its focus on leveraged and inverse ETFs, Volatility Shares, an exchange-traded fund (ETF) issuer based in Palm Beach Gardens, Florida, launched the 2X Bitcoin Strategy ETF (BITX) in 2019. In recent weeks, it has risen to become the largest holder of bitcoin futures contracts at the Chicago Mercantile Exchange (CME).
Currently the largest of its kind, this bitcoin futures ETF saw a 135% return in Q1, double that of spot Bitcoin ETFs.
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Investors Hoard Assets Ahead of Bitcoin Halving
As the highly anticipated Bitcoin Halving approaches, investors have been piling up BTC assets. A good example of this is Marathon Digital’s wallet.
Marathon Digital’s wallets, which had 23 addresses and more than $1.1 billion in Bitcoin, were recently found. By mining 12,85K Bitcoins in 2023, these on-chain wallets brought in $387.5 million in revenue. Before the halving of Bitcoin, the discovery of the Marathon Wallet coincided with a sharp increase in interest in BTC ETFs.
Bitcoin ETF Hype Rises Ahead of Halving
A surge in inflows just before the halving implies that BTC holders are probably hoarding the cryptocurrency in anticipation of the code upgrade. People who are expecting a bull run after the halving keep their BTC profiles strong.
The main reason why market players are stockpiling Bitcoin and clamoring for BTC ETFs is because of the upcoming halving. Even with the recent volatility in the market, Bitcoin whales have been actively buying up enormous amounts of the cryptocurrency. Previous Bitcoin halvings have shown that, following a code upgrade, supply and demand typically become unbalanced. Given the increase in demand and price, this causes a Bitcoin bull run.
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