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<img width="1280" height="720" src="https://coingape.com/wp-content/uploads/2023/11/bitcoin-3732876_1280.jpg" class="attachment-full size-full wp-post-image" alt="Wall Street buy Bitcoin BTC supply Miners" decoding="async" style="float:right; margin:0 0 10px 10px;" srcset="https://coingape.com/wp-content/uploads/2023/11/bitcoin-3732876_1280.jpg 1280w, https://coingape.com/wp-content/uploads/2023/11/bitcoin-3732876_1280-300x169.jpg 300w, https://coingape.com/wp-content/uploads/2023/11/bitcoin-3732876_1280-1224x689.jpg 1224w, https://coingape.com/wp-content/uploads/2023/11/bitcoin-3732876_1280-768x432.jpg 768w, https://coingape.com/wp-content/uploads/2023/11/bitcoin-3732876_1280-678x381.jpg 678w, https://coingape.com/wp-content/uploads/2023/11/bitcoin-3732876_1280-150x84.jpg 150w" sizes="(max-width: 1280px) 100vw, 1280px">
The advent of U.S. Spot Bitcoin ETFs has set off a frenzy among Wall Street players, signaling their increasing confidence in the flagship crypto, Bitcoin. However, this surge in institutional interest has raised concerns about a potential BTC supply crunch. Amid this, major Wall Street banks are now vying to directly purchase Bitcoin from mining companies, seeking to bolster their reserves amid growing scarcity.
<h2 id="wall-street-banks-accumulating-bitcoin-from-miners">Wall Street Banks Accumulating Bitcoin From Miners</h2>
The launch of <a href="https://coingape.com/bitcoin-etf-shatter-records-with-111-bln-trading-in-march-whats-next/" target="_blank" rel="noopener noreferrer nofollow">U.S. Spot Bitcoin ETFs</a> on January 11 has witnessed staggering success, with over $12 billion in inflows recorded since then. Notably, the optimism over the U.S. Spot Bitcoin ETF success has also fuelled positive sentiment in the market, sending Bitcoin price to its all-time high of nearly $73,000 recently.
However, this rapid uptake has led to a shortage of Bitcoin on <a href="https://coingape.com/glossary/centralized-cryptocurrency-exchanges-cex/" target="_blank" rel="noopener noreferrer nofollow">centralized exchanges</a>, compelling Wall Street banks to explore alternative avenues for acquisition. Notably, companies like <a rel="noopener noreferrer nofollow" href="https://www.dlnews.com/articles/snapshot/miner-says-wall-street-bankers-want-to-buy-bitcoin-holdings/" target="_blank">Hut 8</a>, a prominent BTC mining firm, have been approached by these Wall Street players, eager to bolster their Bitcoin holdings, according to a report by DL News.
Meanwhile, the report added Hut 8 CEO Asher Genoot’s statement, which revealed that the mining firm has received direct inquiries from major Wall Street banks looking to purchase <a href="https://coingape.com/glossary/bitcoin/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin</a> directly from them. In addition, he emphasized Wall Street’s interest not only in Hut 8’s existing BTC reserves, which amount to nearly $600 million but also in its production capabilities.
Notably, these banks, according to Genoot, encompass some of the largest financial institutions globally, the report added.
Also Read: <a href="https://coingape.com/bitcoin-short-term-investors-lose-5-2b-amid-btc-price-crash/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin Short-Term Investors Lose $5.2B Amid BTC Price Crash</a>
<h2 id="implications-of-halving-on-supply">Implications of Halving on Supply</h2>
Amid the soaring competition between the Wall Street banks, the impending <a href="https://coingape.com/bitcoin-halving-is-3200-surge-feasible-following-potential-supply-crunch/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin halving</a>, scheduled for April 19, adds another layer of complexity to the&nbsp;supply dynamics. This network upgrade will reduce the rate of new Bitcoin creation by half, from about 900 BTC to 450 Bitcoin per day.
Meanwhile, Genoot highlighted the significance of this event, suggesting that it could further intensify the existing <a href="https://coingape.com/bitcoin-exchange-balance-plunges-to-1-8m-is-supply-crunch-finally-in/" target="_blank" rel="noopener noreferrer nofollow">BTC supply</a> shortage issues. With demand for BTC on the rise and a diminished supply on the horizon, the stage is set for further price appreciation in the cryptocurrency market.
“It’s a double whammy in terms of pushing Bitcoin’s price up,” Genoot remarked, underscoring the potential impact of reduced supply alongside heightened demand. As Wall Street banks scramble to secure BTC from miners, the <a href="https://coingape.com/glossary/cryptocurrency/" target="_blank" rel="noopener noreferrer nofollow">cryptocurrency</a> landscape continues to evolve, presenting both challenges and opportunities for investors and industry stakeholders alike.
A flurry of Wall Street players have increased their bets on the flagship crypto, Bitcoin. For instance, <a href="https://coingape.com/michael-saylor-microstrategy-holds-more-bitcoin-us-china-govt/" target="_blank" rel="noopener noreferrer nofollow">MicroStrategy</a>, under CEO Michael Saylor’s leadership, strengthens its BTC investment with the recent acquisition of 9,245 BTC. This move bolsters its status as a significant holder of the cryptocurrency.
With over 214,000 BTC in its portfolio, MicroStrategy now holds about 1% of the total Bitcoin supply, reflecting the shifting Wall Street focus towards the digital asset sector.
Also Read: <a href="https://coingape.com/bitcoin-cash-price-up-10-after-halving-bitcoin-halving-hype-grows/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin Cash Price Up 10% After Halving, Bitcoin Halving Hype Grows</a>
The post <a href="https://coingape.com/wall-street-banks-rush-buy-bitcoin-crypto-miners-amid-supply-woes/" rel="noopener noreferrer nofollow">Wall Street Banks Rush To Buy Bitcoin From Crypto Miners Amid Supply Woes</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

Wall Street Banks Rush To Buy Bitcoin From Crypto Miners Amid Supply Woes

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