As the crypto community eyes the upcoming Bitcoin halving event in mid-April, Wall Street’s appetite for Bitcoin (BTC) is outstripping the digital currency’s production rate, signaling a potential market shift. Anthony Pompliano, a renowned crypto advocate, shared his insights on CNBC’s Squawk Box, revealing the voracious acquisition rate of Bitcoin by institutional investors.

Unquenchable Wall Street Demand

Highlighting the burgeoning institutional interest, Pompliano stated emphatically, “Wall Street LOVES bitcoin. They are buying up 12.5x more bitcoin per day than the network can produce.” This staggering figure underscores the growing mainstream acceptance and the possible implications for supply and demand dynamics.

Spot Bitcoin ETFs: A New Era

The approval of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) marked a milestone in early 2024. Contrary to expectations of a bullish run, Bitcoin experienced a 20% price correction following the ETF launch, attributed to profit-taking and sell-offs, including significant sales from Grayscale’s GBTC.

Acquisition Spree Amid Price Dip

ETF providers, undeterred by the initial price dip, seized the opportunity to bolster their Bitcoin holdings. Grayscale now holds a formidable 475,000 BTC, while BlackRock and Fidelity have expanded their portfolios to over 70,000 and 60,000 BTC, respectively. Other major players including ARK, Bitwise, Invesco Galaxy Bitcoin Trust, and a consortium led by VanEck, Valkyrie, Franklin, and WisdomTree have collectively acquired over 174,000 BTC.

Market Dynamics at Play

The aggressive accumulation of Bitcoin by ETF providers post-ETF launch reflects the intricate interplay of market forces. Bitcoin’s ascent past $50k is a testament to the intense supply-demand equation currently influencing the market. With the halving set to further constrict Bitcoin’s supply and demand projected to rise, particularly from institutional investors, analysts like Pompliano anticipate the pioneering cryptocurrency to reach new yearly highs.