According to a report published by Glassnode researchers on November 20th, a surge in demand could challenge the relatively limited supply of Bitcoin (BTC) and potentially increase volatility. The blockchain data company's research indicates a significant suppressed demand for spot Bitcoin ETF products. Analysts estimate that stock, bond, and gold investors need only allocate a small portion of their assets to inject up to $70.5 billion into the market. Even more conservative predictions suggest that there could be billions of dollars flowing into the market in the initial years.

The Glassnode research report explains that to understand the potential market dynamics after the ETF launch, attention needs to be turned to the available supply of Bitcoin. The analysis emphasizes how long-term accumulation tightens the circulation supply of Bitcoin. Currently, over 76% of Bitcoin is held long-term, concentrated in the hands of holders who react less to price fluctuations. Glassnode's research shows that the supply of short-term and active traders has recently hit new lows in years.