According to CryptoPotato, Bitcoin's fourth halving has taken place, reducing the block rewards to 3.125 BTC. Despite the historical significance of this event as a catalyst for a new bull cycle, there is ongoing debate about the diminishing effects of this halving. However, there are several other positive developments in the Bitcoin sector that could stimulate interest in the coming months.
In mid-January, the US Securities and Exchange Commission approved nearly a dozen spot Bitcoin ETFs to begin trading on local exchanges. This is arguably the most positive news this year. These products, led by BlackRock's IBIT and Fidelity's FBTC, attracted billions of dollars worth of BTC in just a few months. This demand led to a significant increase in spot BTC prices, with the cryptocurrency nearly doubling its USD value and reaching a new all-time high before the halving for the first time. However, as the inflows began to decrease and even turned negative on some occasions, BTC's price growth was halted, and the asset fell by about ten thousand dollars from its March peaks. Reports suggest that these ETFs are crucial for Bitcoin's continued growth as an asset.
BNY Mellon, one of the oldest and largest banking organizations in the United States, recently revealed its exposure to some of the spot BTC ETFs trading locally. BNY has been a long-time supporter of the cryptocurrency industry, even when most US banks were publicly criticizing or ignoring it. Another positive development related to the US ETF market came from Morgan Stanley. The Wall Street giant is reportedly considering allowing its 15,000 brokers to recommend clients to purchase spot Bitcoin ETF funds.
While the US demand may be slowing down, there are more positive developments from other jurisdictions. Hong Kong is prepared to launch its own spot Bitcoin and Ethereum ETFs soon, even though the impact will likely be smaller due to the market's size compared to the US. Analysts such as Lark Davis believe the launch of spot ETFs in Hong Kong will create a 'massive ripple effect' across the entire Asian continent, with more countries expected to follow suit.