Bitcoin reached a remarkable milestone on Wednesday, soaring to a fresh all-time high amidst escalating demand from spot Bitcoin ETFs.

The cryptocurrency's price surged by as much as 2.2% during morning trades on Wednesday, peaking at an impressive $73,679.

Spot Bitcoin ETFs Driving Demand

A significant portion of this surge in demand for Bitcoin is attributed to spot Bitcoin ETFs, which gained regulatory approval from the SEC and were launched in January.

On Tuesday alone, a staggering $1.1 billion flowed into spot Bitcoin ETFs, excluding investments in the Grayscale Bitcoin Trust. According to JPMorgan data, BlackRock led the charge in these spot Bitcoin ETFs, attracting a record $849 million in inflows on Tuesday.

Business Insider says approximately $31.1 billion is held in various spot Bitcoin ETFs, excluding Grayscale's holdings. The total climbs to nearly $59 billion when factoring in Grayscale's Bitcoin ETF.

Competition among ETFs and Supply Dynamics

Following Grayscale and BlackRock, Fidelity's FBTC emerges as the next major spot Bitcoin ETF, accumulating $9.1 billion in assets under management. It is trailed by the Ark / 21 Shares Bitcoin ETF, which had $2.8 billion in assets as of March 12.

A Daily Fx report says although the demand for spot Bitcoin ETFs might experience a decline, the dynamics on the supply side are poised to propel BTC to further highs in the upcoming weeks.

The competition for investors' Bitcoin allocation has intensified, with ETF issuers resorting to fee waivers for a specific duration post-launch. Notably, BlackRock appears to be emerging victorious, with its Bitcoin ETF now holding 215,625 bitcoins, surpassing MicroStrategy's 205,000 bitcoin stash.

This surge in demand comes amidst a backdrop of limited supply. With only 6,300 new bitcoins mined each week, the demand from ETFs has outpaced the new supply, driving prices higher. Moreover, this supply is expected to diminish further next month with the impending bitcoin halving event, which will reduce the weekly new bitcoin issuance to just 3,150.

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