Ramazan Eles 
As the Bitcoin Halving approaches, a surge in investor interest is propelling Bitcoin-related assets like 2X BTC leveraged ETFs into the spotlight. Fueled by the anticipation of a post-halving bull run, investors are accumulating these instruments in hopes of amplified returns.
Bitcoin Leveraged ETFs Gain Momentum
Volatility Shares, a prominent ETF issuer, capitalized on the leveraged and inverse ETF trend by launching the 2X Bitcoin Strategy ETF (BITX) in 2019. According to Forbes, BITX has recently emerged as the biggest holder of Bitcoin futures contracts on the Chicago Mercantile Exchange (CME). This first-of-its-kind Bitcoin futures ETF delivered a remarkable 135% return in Q1, exceeding the performance of spot Bitcoin ETFs by a factor of two.
Investors Stockpile Assets in Anticipation of the Halving
The impending Bitcoin Halving has triggered a wave of accumulation among investors. A prime example is the recent discovery of Marathon Digital’s sizable Bitcoin holdings. These on-chain wallets, encompassing 23 addresses and over $1.1 billion in Bitcoin, generated a staggering $387.5 million in revenue through mining 12,85K Bitcoins in 2023. Notably, the revelation of the Marathon Wallet coincided with a significant uptick in interest for BTC ETFs, further highlighting the pre-halving stockpiling behavior.
Halving Fuels Bitcoin ETF Hype
The pre-halving surge in inflows into BTC ETFs suggests that Bitcoin holders are strategically accumulating the cryptocurrency in anticipation of the upcoming code upgrade. This hoarding behavior reflects investor confidence in a potential post-halving bull run, prompting them to maintain strong BTC positions.
The Allure of Halving-Driven Bull Run
The primary driver behind the current stockpiling of Bitcoin and the surge in demand for BTC ETFs is the highly anticipated Bitcoin Halving. Even amidst recent market volatility, Bitcoin whales (large holders) have been actively accumulating significant amounts of the cryptocurrency. Historically, Bitcoin halvings have triggered imbalances between supply and demand following the code upgrade. This dynamic, coupled with rising demand and price, has often paved the way for Bitcoin bull runs.