Bitcoin monthly digest: April 2024

As we step into May, we're thrilled to be back with the newest instalment of our monthly Bitcoin digest. This newsletter serves as your essential guide to staying informed about all things Bitcoin. So, without further ado, let's dive into the happenings of April and explore the latest developments in the world of Bitcoin.

• The Bitcoin halving

The Bitcoin halving, occurring approximately every four years, is a pivotal event for the network, deeply ingrained in the protocol governing Bitcoin's issuance. With the most recent halving taking place in April 2024, it marked once again the reduction of the reward granted to Bitcoin miners by half.

During each halving event, the reward for successfully mining a block is halved, leading to a reduction in the rate at which new bitcoins are generated. Initially set at 50 bitcoins per block, the first halving in 2012 saw this reward drop to 25 bitcoins. Subsequent halvings in 2016 and 2020 further reduced the reward to 12.5 bitcoins and 6.25 bitcoins, respectively. The latest one, happened in April 2024, further reduced the block subsidy to 3.125 units.

This process is an integral component of Bitcoin's deflationary monetary policy, with a maximum cap of 21 million bitcoins in circulation. By halving the reward at regular intervals, Bitcoin seeks to increase scarcity and gradually cancel its inflation rate, echoing the supply-demand dynamics crucial to its value proposition. The halving events serve as a mechanism to ensure the gradual issuance of bitcoins, fostering a controlled and predictable growth trajectory in the purchasing power for the digital asset. If you are interested in this topic, you might consider reading this brief article with a few fun facts about the Bitcoin halving event!

• Institutional adoption: are big banks coming?

Reports circulating on social media suggest that Morgan Stanley, a leading U.S. bank with $1.5 trillion in assets under management, is gearing up to become the first major financial institution in the United States to offer spot Bitcoin ETFs to its clients. If confirmed, this move would signal a significant shift in institutional acceptance of Bitcoin. The news, shared by several Bitcoin reporters and Bloomberg analyst Eric Balchunas, suggests that global banks, including Morgan Stanley, have been actively discussing the addition of Bitcoin ETFs to their offerings.

The potential launch of a Bitcoin ETF by Morgan Stanley would represent a major milestone in Bitcoin's mainstream acceptance. It reflects a significant turnaround from CEO James Gorman's previous skepticism about Bitcoin's institutional appeal. The move could attract billions in new client assets, potentially paving the way for other wealth managers to follow suit. As Bitcoin gains momentum in the mainstream financial system, significant bank adoption may be on the horizon.

• Asia gets its own Bitcoin ETF

Since the start of this year, there has been no shortage of ETF-related news: January: Launch of US-based Bitcoin ETFs February: Announcement of upcoming Korea-based Bitcoin ETFs

And now, Hong Kong has joined the party too! Hong Kong's Securities and Futures Commission has granted approval for Bitcoin Spot ETFs, signaling a significant milestone for the Bitcoin industry in Asia. Local asset manager HashKey Capital confirmed the launch of its Bitcoin ETF, scheduled for next Tuesday, making it one of the first companies to offer such a product in Hong Kong. OSL, a digital asset platform, is also gearing up to launch spot Bitcoin products by late April, further solidifying Hong Kong's position as a frontrunner in providing access to Bitcoin through traditional financial instruments. Meanwhile, top asset managers in China are preparing for the launch of spot Bitcoin ETFs, expected to attract significant interest from investors. Predictions suggest that Hong Kong Spot Bitcoin ETFs could unlock up to $25 billion in new demand, potentially impacting Bitcoin's available supply even further.

That's all for now, folks! Don't be shy: get in touch with us by using the "Contact us!" button at the top of this page, or leave a comment down below with any questions or comments. We look forward to keeping you posted on the latest developments in Bitcoin-land. See you next month!