As the Bitcoin Halving approaches, investors are optimistic about the potential for a bull market and are accumulating Bitcoin-related assets like BTC leveraged ETFs.

With the upcoming Bitcoin Halving drawing near, investors have high hopes for Bitcoin. The prospect of a bullish market post-halving has led to an increase in the accumulation of Bitcoin-related assets, including BTC leveraged ETFs.

Increasing Popularity of Bitcoin Leveraged ETFs

Volatility Shares, an ETF issuer based in Florida, introduced the 2X Bitcoin Strategy ETF (BITX) in 2019, focusing on leveraged and inverse ETFs. In recent weeks, it has become the largest holder of bitcoin futures contracts at the Chicago Mercantile Exchange (CME), making it the most significant bitcoin futures ETF

This bitcoin futures ETF, currently the largest of its kind, reported a 135% return in the first quarter, twice that of spot Bitcoin ETFs.

Investors Gather Assets in Anticipation of Bitcoin Halving

As the highly awaited Bitcoin Halving event nears, investors have been amassing BTC assets. An example of this is Marathon Digital’s wallet, which recently surfaced and revealed 23 addresses containing over $1.1 billion in Bitcoin. These on-chain wallets mined 12,850 Bitcoins in 2023, generating $387.5 million in revenue. The discovery of the Marathon Wallet coincided with a surge in interest in BTC ETFs before the Bitcoin Halving.

Growing Enthusiasm for Bitcoin ETFs Before the Halving

A notable increase in investments just prior to the halving suggests that BTC holders may be accumulating the cryptocurrency in preparation for the upcoming code upgrade. Those expecting a rise in prices post-halving are bolstering their BTC holdings.

The current frenzy surrounding Bitcoin and the demand for BTC ETFs can be attributed to the impending halving. Despite recent market fluctuations, prominent investors are purchasing significant amounts of the cryptocurrency. Historical Bitcoin halving events have shown that after the code upgrade, supply and demand dynamics typically shift, resulting in a bull market due to increased demand and prices.