Crypto Markets Brace For Super Cycle as Bitcoin ETFs Scoop 5% of BTC Supply

Spot Bitcoin ETF issuers now control roughly 5% of the total circulating supply; here’s why crypto experts predict a bull “super cycle” in the next leg up.

Bitcoin surged by 1,000,000% in the last decade. In the last bull cycle from mid-October to mid-March 2024, prices spiked by over 175%.

The trend is clear; BTC is always on the uptrend. But, over the past four months or so, there have been changes in dynamics; the big boys were allowed to get BTC exposure. 

Fundamentally, this is huge! Even before the United States SEC approved spot Bitcoin ETFs in mid-January, the anticipation helped drive demand, forcing prices above 2021 highs.

Now, as spot Bitcoin ETF issuers like ProShares, Fidelity, BlackRock, and Bitwise gobble up thousands of BTC every week, traders are expecting a bull “super cycle.” The sharp leg up, observers say, will be driven by institutions.

But The Key Question: Will this be the case?

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Spot Bitcoin ETF Demand Driving Price

Admittedly, questions are being asked about the sustainability of the current uptrend. True, prices rose, but the failure of bulls to break $72,000 is suspect. BTC bulls are likely weaker compared to past cycles.

(BTCUSDT)

As of early May 28, prices retraced after briefly breaking $70,000. If prices fail to recover today, the probability of further draw down below $66,000 will rise. In that case, BTC bulls will be in serious trouble.

If institutions come to the rescue and re-align price action in the direction set in Q1 2024, then they must scoop even more BTC via spot ETFs.

According to Glassnode, Grayscale’s GBTC trust holds over 288,084 BTC despite redeeming thousands of BTC since mid-January 2024 when the United States SEC approved the product.

(DuneAnalytics)

Following closely is BlackRock with over 284,000 BTC and Fidelity with roughly over 154,000 BTC.

Spot Bitcoin ETF issuers in the United States dominate. However, they are not the only issuers. Across Europe, Germany’s BTCE holds over 22,000 BTC on behalf of its clients.

At the same time, Brazil’s HASH11 fund holds nearly 8,000 BTC.

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Beyond this, public companies are seeking exposure. According to BitcoinTreasuries, MicroStrategy, a business intelligence firm, currently has 214,400 BTC.

The Bottom Line: Will A Super Cycle Push BTC Above $100,000?

Since the approval of spot ETFs, trading volume has been picking up momentum, especially during United States trading hours. 

This emerging trend is understandable because the dominant issuers are from the country.

Even though prices play a crucial role in the pace at which institutions seek exposure to spot Bitcoin ETFs, endorsement from the big boys is important.

If bulls manage to break above $72,000, even breaching $73,800, institutional interest in the coin will likely shoot higher, triggering a super cycle that will lift BTC above $100,000.

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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.