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The launch of Bitcoin spot exchange-traded funds (ETFs) on January 11 has led to a dramatic surge in demand, resulting in a Bitcoin supply shortage. According to Asher Genoot, CEO of Hut 8 Mining, one of the largest Bitcoin mining companies globally, major banks are now approaching miners directly to purchase Bitcoin. This shift comes as ETFs have absorbed over 211,000 Bitcoin, worth approximately $12 billion, causing a scramble for available coins on centralized exchanges.
Hut 8 Mining, with a market capitalization nearing $1.2 billion and holding almost $600 million in Bitcoin, has become a primary target for these banks. The impending Bitcoin network upgrade, expected to cut new Bitcoin creation by half, further intensifies the supply-demand imbalance. Genoot highlights the critical situation, noting that increased demand coupled with decreasing supply is pushing Bitcoin’s price upward, marking a significant moment in the cryptocurrency’s history.
