Navigating the Bitcoin Halving: A Guide for Investors

Canaccord's report suggests that the upcoming Bitcoin reward halving event could further boost the momentum for ETFs tied to the cryptocurrency, potentially becoming a more significant factor in its price action. The approval of spot ETFs, the impending halving, and increased risk appetite in financial markets were key drivers behind Bitcoin's 60% rally in the first quarter. The halving, which will reduce miner rewards by 50%, is expected next month and has raised questions about miner profitability. Canaccord sees the SEC's approval of U.S. spot Bitcoin ETFs as a positive development, anticipating continued retail investor interest in adding crypto exposure to tax-advantaged accounts. The report also notes signs of decoupling between publicly traded miners and Bitcoin's price, with spot ETFs offering equity investors an alternative way to gain exposure to the cryptocurrency.