Bitcoin monthly digest: March 2024

Hello and welcome back to abitnewworld.com!

Now that April has begun, we're back again to present the newest instalment of our monthly Bitcoin newsletter, serving as your essential resource for staying informed on all matters related to Bitcoin. Let's dive in and check out what happened in March.

• Can Bitcoin help Ethiopia?

The recent spotlight on Ethiopia's bitcoin mining sector, sparked by a Bloomberg article and the government's investment announcement, highlights the nation's potential in this industry. Ethiopia's surplus electricity, primarily from hydropower, offers a lucrative opportunity for bitcoin mining, with projections showing it could generate substantial export income.

Bitcoin mining could help monetize surplus electricity, address trade deficits, improve access to electricity, create jobs, and even build a bitcoin treasury. However, challenges such as infrastructure development and historical contexts need consideration. Amidst these opportunities and challenges, a cautious and humble approach is urged as Ethiopia navigates this transformative potential in the bitcoin mining space.

• Bitcoin ETFs: a resounding success story

The demand for US spot Bitcoin Exchange Traded Funds (ETFs) skyrocketed in March, surpassing the daily supply created by miners by a staggering 614%, reports Gayatri Choudry, a Quantitative Research Analyst at Bitwise Asset Management. This surge reflects increasing interest from both institutional and retail investors in accessing Bitcoin exposure through regulated ETFs, which offer a convenient alternative to direct ownership.

With the Bitcoin halving (not sure what the "halving" is? Check it out here!) approaching in less than a month, reducing newly issued Bitcoin by half, the asset is becoming scarcer. Many investors attribute the recent surge in Bitcoin's price (up by over 55% year-to-date) to this "engineered scarcity" feature, coupled with rising demand for the newly approved spot Bitcoin ETFs. Market watchers are keen to observe how Bitcoin will respond to the halving, especially as demand for spot Bitcoin ETFs continues to grow unabated.

• Everyone wants a piece of Bitcoin, now... (part two)

Last month, we reported how the Arizona State Senate voted in favour of the inclusion of Bitcoin ETFs in two of the state’s retirement portfolios. Earlier this month, Robert Mitchnick, BlackRock's Head of Digital Assets, discussed the firm's stance on Bitcoin, and the firm's approach to this novel asset. Mitchnick underscored that Bitcoin remains the primary focus for BlackRock's clients, with little interest in other crypto assets. Despite the crypto community's desire for a wider range of products, BlackRock's focus remains squarely on Bitcoin (editor's note: as it should). Mitchnick expressed optimism about the convergence of traditional finance and new technology in the future of Bitcoin on Wall Street, envisioning a fusion of the best aspects of both systems. Following the approval of spot Bitcoin ETFs by the United States Securities and Exchange Commission earlier this year, including BlackRock's application, BlackRock's spot Bitcoin ETF $IBIT has seen remarkable success, boasting net inflows for the past 49 consecutive days, a feat achieved by only a select few ETFs in history.

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!