Wall Street is Acquiring Bitcoin at a Rapid Rate, Says Anthony Pompliano
According to Anthony Pompliano, Wall Street is acquiring Bitcoin at a rate 12.5 times greater than its daily production, indicating a strong institutional interest in the cryptocurrency. Pompliano emphasized this during an interview on CNBC’s Squawk Box, stating that “Wall Street LOVES bitcoin” and they are buying up more bitcoin per day than the network can produce.
Institutional Demand for Bitcoin
Pompliano’s comments highlight the significant institutional demand for Bitcoin, especially as the cryptocurrency approaches its halving in mid-April. The halving will reduce the rate at which new Bitcoins are created, potentially tightening the supply-demand balance even further.
Bitcoin ETFs and Price Impact
In early 2024, the SEC approved the first cache of spot Bitcoin ETFs in the US. Contrary to expectations, Bitcoin’s price fell by 20% in January after the introduction of these ETFs. Factors contributing to this decline include profit-taking after a 200% price surge and sales from Grayscale’s GBTC.
ETF Providers Increase Bitcoin Holdings
Despite the initial price drop, ETF providers took advantage of lower prices to increase their Bitcoin holdings. Grayscale leads with over 475,000 BTC, followed by BlackRock and Fidelity with more than 70,000 and 60,000 BTC respectively. Other providers like ARK, Bitwise, Invesco Galaxy Bitcoin Trust, and a consortium of VanEck, Valkyrie, Franklin, and WisdomTree have also acquired over 174,000 BTC combined.
The Dynamics of Supply and Demand
This aggressive acquisition by ETF providers reflects the supply and demand dynamics in the market, which is driving Bitcoin’s price past $50k. With Bitcoin’s supply set to decrease further after the halving and increasing demand from institutional investors, analysts like Pompliano predict that Bitcoin could reach new yearly highs.
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