Wall Street Dives into Bitcoin: Banks Turn to Miners Amid Growing Demand
Wall Street turns to crypto miners for Bitcoin amid ETF boom and looming supply crunch
As Bitcoin scarcity looms, Wall Street banks are now sourcing directly from crypto miners, spurred by the Spot Bitcoin ETFs' success which has led to a significant decrease in available Bitcoin on exchanges.
Bitcoin ETFs have seen an infusion of over $12 billion, lifting the cryptocurrency's price to record highs.
This market trend has driven banks to consider alternative sources such as miners for acquiring Bitcoin, with Hut 8 Mining Corp fielding inquiries from several institutions.
Hut 8's chief, Asher Genoot, has reported interest from major banks in not just the company's Bitcoin assets but also its future production capabilities, though specific names of these financial behemoths were not released.
The expected Bitcoin halving event on April 19 is set to further strain supplies by reducing new Bitcoin generation, potentially leading to price increases as supply fails to meet demand, as per Genoot's analysis.
MicroStrategy's significant Bitcoin acquisition—buying an additional 9,245 BTC—illustrates the escalating commitment of Wall Street to cryptocurrency, with the company now possessing about 1% of the total Bitcoin supply, highlighting a shift to digital asset investment.
