Ramazan Eles 
According to a recent report by brokerage firm Canaccord Genuity, if historical trends are any indication, the cryptocurrency market, particularly Bitcoin (BTC), could be poised for an even more bullish phase in the months following the halving event.
Canaccord noted that the significant 60% rally in Bitcoin during the first quarter was primarily fueled by several factors, including the approval of spot exchange-traded funds (ETFs), anticipation surrounding the upcoming reward halving, and a growing appetite for higher-risk investments in financial markets.
The report highlighted the potential impact of the upcoming halving, which will see miner rewards cut by 50%, effectively reducing the supply of Bitcoin. Anticipated to occur in April, this quadrennial event is expected to have profound implications for the cryptocurrency market.
Canaccord expressed optimism regarding the recent approval of 11 U.S. spot Bitcoin ETFs by the Securities and Exchange Commission (SEC) in the first quarter. The analysts emphasized that while Bitcoin’s price surge in Q1 exceeded ETF inflows, the momentum generated by ETFs is expected to persist. Retail investors are increasingly seeking crypto exposure for Individual Retirement Accounts (IRAs) and other tax-advantaged accounts, which could drive further adoption of spot ETFs and contribute to Bitcoin’s price dynamics.
The report also noted a divergence in performance between publicly traded miners and Bitcoin itself in the first quarter. With the upcoming halving introducing uncertainty regarding miners’ profitability, spot ETFs are seen as an alternative avenue for equity investors to gain exposure to Bitcoin.
Canaccord speculated that if historical patterns repeat, the period following the halving event could witness even more bullish momentum for Bitcoin and the wider cryptocurrency market. This anticipation underscores the growing significance of ETFs and their potential impact on shaping Bitcoin’s trajectory in the foreseeable future.