Strong ETF Demand May Have Dampened Bitcoin’s Bullish Halving Narrative

**Bitcoin’s Halving and the Impact of Spot ETF Approval**

Bitcoin’s (BTC) halving – which is often seen as a bullish catalyst for the price – may not be as positive as the market thinks, thanks to the approval of spot exchange-traded funds (ETF).

**Historical Impact of Halving on Bitcoin Price**

Halving, which occurs every four years, cuts bitcoin’s supply growth by half, historically causing upward pressure on the price of the largest digital asset. The previous halving cycles pushed bitcoin to new highs, and this time, strong demand from the spot ETF may add even more fuel to the rally.

**Potential Concerns with ETF Demand**

While the demand from the spot ETFs has been significantly more than the daily new BTC mined, there are concerns that the ETFs may have pulled demand forward, leading to a potential stagnation in prices post-halving.

**Expert Opinions on ETF Impact**

Experts like David Lawant and Anthony Anderson believe that the ETFs have preempted the impact of halving on supply by acquiring BTC since the beginning of the year. ETF analyst James Seyffart also suggests that the impact of halving on ETF flows may not be extremely impactful in the short term.

**Long-Term Outlook for Bitcoin and ETF Flows**

Despite short-term concerns, experts like Bob Iacchino and David Lawant believe that halving will be a significant catalyst for bitcoin and the ETF flows in the long term. The supply shortage created by halving may lead to a longer-term impact on ETF flows as it impacts bitcoin’s marginal supply into perpetuity.

**Bracing for Volatility**

As the market braces for volatile short-term trading for bitcoin and ETF flows post-halving, experts like Anthony Anderson suggest that in the long term, net flows for the funds should come in at a similar pace that is seen currently.


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