Wall Street Bitcoin ETF Boom Sparks Crypto Renaissance, Fuels Halving Speculation

Bitcoin's value has skyrocketed in 2022 due to the launch of spot bitcoin exchange-traded funds (ETFs) backed by Wall Street giants. BlackRock's entry has fueled the surge, leading to the erasure of the 2022 price crash and a climb above $70,000 per bitcoin. Speculations about a Wall Street bitcoin ETF leak and the impending halving have further excited traders, driving social media buzz and anticipation for potential price transformations in the near future.

Wall Street's Bitcoin ETF Boom Powers Currency's Resurgence, Sparking Halving Speculation

This year, Bitcoin (BTC) has experienced a surge in value, reaching unprecedented heights. The catalyst for this exponential growth has been the eagerly anticipated launch of a plethora of spot Bitcoin exchange-traded funds (ETFs) on Wall Street. Notably, BlackRock's CEO has issued a dire warning regarding the US dollar's impending devaluation.

The Bitcoin price has not only recovered from its 2022 plunge but has also surpassed $70,000 per Bitcoin, primarily due to the Bitcoin ETF boom spearheaded by BlackRock. However, the Federal Reserve's policies may have played a role in creating an environment conducive to Bitcoin's price appreciation.

Currently, traders are speculating that Bitcoin's impending halving event could trigger significant price volatility. Furthermore, rumors of a Wall Street Bitcoin ETF leak have ignited fervent speculation on social media, suggesting that a game-changing development for Bitcoin's price is imminent.

The soaring Bitcoin price has surpassed its previous all-time high of $69,000 per Bitcoin as Wall Street behemoths like BlackRock aggressively enter the Bitcoin market.

According to an influential and anonymous Bitcoin commentator on the X platform, banking giant Morgan Stanley (MS) has expressed its ambition to "be the first wirehouse to fully approve the Bitcoin ETFs." This commentator claims to have conversed with "several" Morgan Stanley executives and speculates that "it's interesting that global banks are discussing Bitcoin ETFs as a race."

A respected ETF analyst at Bloomberg Intelligence, Eric Balchunas, corroborated this claim, stating, "I heard from a solid source that none of them have added the Bitcoin ETFs, still in a holding pattern, in a compliance game of chicken, waiting for one of them to go first, then gives the rest cover." Balchunas further remarked, "So probably will be an all at once type moment, when that is though is [the question]."

According to data from CoinGlass, total inflows into the nearly dozen new spot Bitcoin ETFs this week have reached $12.2 billion, with BlackRock, the world's largest asset manager, and investment behemoth Fidelity leading the charge. Last week, a leak indicated that a Hong Kong spot Bitcoin ETF could potentially ignite a Bitcoin price surge in China.

In February 2022, Matt Hougan, the chief investment officer at Bitcoin ETF issuer Bitwise, predicted that wirehouses opening up Bitcoin ETFs to retail investors, hedge funds, and independent financial advisors would trigger an even more substantial wave of Bitcoin price appreciation than the ETF approvals in January.

Meanwhile, Wall Street giants Citi, Goldman Sachs (GS), UBS, and Citadel have joined JPMorgan and Jane Street as authorized participants for BlackRock's spot Bitcoin ETF, as per a Securities and Exchange Commission (SEC) filing.

Bitcoin ETF authorized participants possess the ability to create and redeem shares of the ETF, exchanging them for either a corresponding basket of securities or cash. Balchunas remarked on X that the involvement of these banks signifies that "big-time firms now want a piece of the action and/or are now OK being publicly associated w[ith] this."

In addition to the excitement surrounding Bitcoin ETFs, crypto traders are also closely monitoring the impending Bitcoin supply reduction event known as halving, scheduled to occur in just two weeks. This event will witness a 50% decrease in the flow of new Bitcoin.

"As the Bitcoin market continues to mature, the upcoming halving might play out differently than we've historically seen," Ben Weiss, CEO of CoinFlip, stated in emailed comments.

Weiss added, "Factors such as successful Bitcoin ETF approvals from major institutions such as BlackRock and the upcoming election could also influence the price of Bitcoin. Similarly to the recent ETF approvals, people are eager to see the impact of the upcoming halving, and as anticipation ramps up, we will likely see Bitcoin believers buying it ahead of time."