The Bitcoin ETFs will invade the BTC market! Creating huge shortages!

Spot Bitcoin ETFs continue to gain popularity, strengthening their hold on the limited supply of the leading crypto. A recent analysis predicts that these financial instruments will hold more than 10% of the available 21 million Bitcoin by the third quarter of 2024. This prospect raises concerns about potential supply tensions that could sharply increase prices.

The Inexorable Rise of Bitcoin ETFs

Today, existing spot Bitcoin ETFs already represent more than 4% of the total BTC supply. However, this share is expected to grow rapidly in the coming months. Indeed, these instruments continue to attract investors, enticed by simplified and regulated access to Bitcoin. Additionally, their stock market listing allows for easy transactions, stimulating their adoption.

However, the analysis notes that this projection is based on the rejection of spot Ether ETF applications in the United States. In other words, if an ETF linked to the second most important crypto were approved soon, it could reduce the appetite for Bitcoin ETFs. Such a scenario would indeed offer a new option for crypto exposure to investors.

The Ether factor nevertheless represents a double-edged sword. On one hand, the deflationary nature of Ether, unlike Bitcoin, could make it more attractive. But on the other hand, the absence of Ether ETFs should concentrate institutional demand on Bitcoin in the short term.

A Supply Crisis in Sight?

In any case, the analysis anticipates that the growing demand for existing Bitcoin ETFs, combined with the capped supply of Bitcoin, could lead to a real supply crisis. In this scenario, BTC prices would soar, well beyond the current levels of around $72,000. This perspective echoes the warnings of seasoned investors like Michael Saylor. He has repeatedly pointed out that Bitcoin’s limited supply would inevitably lead to shortages as institutional demand intensifies. Analysts estimate that the critical threshold of 10% of the supply held by Bitcoin ETFs could be the trigger for widespread frenzy.

Yet, such forecasts remain uncertain in the unpredictable world of cryptos. Nonetheless, the adoption of Bitcoin ETFs seems well established and is expected to continue unless a major regulatory shock occurs. Investors will certainly keep a close eye on this potential supply crisis in the coming months. In the meantime, the recent rise of Ether above $4,000 is beginning to brighten this asset as well. However, the crypto is still far from its historic highs. Its potential for future appreciation fuels speculation about a possible spot ETF by the end of 2024.

Ultimately, this crypto analysis highlights the growing dynamics of Bitcoin ETFs, which could lead to unprecedented tensions on the supply of the leading cryptocurrency in the near future. If these predictions materialize, the widespread adoption of Bitcoin will likely reach a new milestone.