A company or a government might attempt to buy a significant amount of Bitcoin, but it would likely get tricky pretty fast, as the price will only continue to rise, analysts say.
The long-awaited potential approval of a spot Bitcoin (BTC) exchange-traded fund (ETF) in the United States could mean the market sees Bitcoin supply suddenly drop as funds snap up as much as they can, some market observers have predicted. With prominent firms like Ernst & Young expecting SEC approval to trigger massive demand from institutions, will the financial giants behind these ETFs leave any actual Bitcoin on the market for the rest of us?
The U.S. A spot Bitcoin ETF would bring up to $30 billion of fresh cash into Bitcoin, crypto entrepreneur and investor Lark Davis estimated in September 2023. In such a scenario, spot Bitcoin ETF issuers would buy up about 50% of all Bitcoin on crypto exchanges to back their ETFs, he projected.
But buying as much Bitcoin as possible would likely get tricky for anyone, several industry executives and analysts agree.
