According to Anthony Pompliano, Wall Street is on its way to new all-time highs, acquiring Bitcoin at a rate 12.5 times greater than daily production.
Anthony Pompliano recently highlighted Wall Street’s significant interest in Bitcoin (BTC) on CNBC’s Squawk Box, saying, “Wall Street loves Bitcoin. “They are buying 12.5 times more Bitcoin per day than the network can produce.”
Pompliano’s comments highlight strong institutional demand for Bitcoin. This especially highlights that as the cryptocurrency approaches its halving in mid-April, the rate at which new Bitcoins are created will be cut in half, potentially strengthening the already tight supply-demand balance.
In early 2024, the U.S. Securities and Exchange Commission (SEC) approved the first U.S. Cash pf Spot Bitcoin ETF. Bitcoin prices were expected to rise immediately, but after the ETF was introduced, Bitcoin prices fell 20% in January.
This decline was influenced by various factors, including profit taking and Grayscale GBTC sales after the 200% surge in Bitcoin price.
Despite this initial decline, ETF providers took advantage of low prices to increase their Bitcoin holdings. Grayscale currently leads with over 475,000 BTC. BlackRock and Fidelity also significantly increased their holdings, holding over 70,000 BTC and 60,000 BTC respectively.
ARK, Bitwise, and Invesco Galaxy Bitcoin Trust along with consortiums VanEck, Valkyrie, Franklin, and WisdomTree acquired a total of over 174,000 BTC. In total, these purchases account for nearly 1% of the total Bitcoin circulating supply.
This aggressive acquisition by ETF providers since the introduction of the Bitcoin ETF reflects the dynamics of market supply and demand, which has now pushed Bitcoin past $50,000. As the supply of Bitcoin declines further after the halving and demand continues to grow, especially from institutional investors, the price of Bitcoin could see the original cryptocurrency hit new annual highs, according to analysts like Pompliano.