Bitcoin ETFs Are Driving a Spot Multiplier Effect, Canaccord Says

Bitcoin exchange-traded funds (ETFs) are generating a multiplier effect on the demand for the underlying cryptocurrency, according to a research report by Canaccord Genuity. The broker’s analysis revealed that ETFs are driving additional demand for Bitcoin, with the BTC demand curve moving to the right while the supply curve remains unchanged. Canaccord also highlighted that spot Bitcoin ETFs will soon be available on various investment platforms, meaning investment advisors will have to form opinions on the cryptocurrency. Additionally, the report suggested that sovereign wealth funds may already be invested in Bitcoin and predicted more announcements from institutional investors in the near future. Furthermore, new accounting standards and concerns about inflation could lead more corporations to consider adding Bitcoin to their balance sheets, similar to MicroStrategy.