How Bitcoin climbs to $140k next as ETF conversions drain BTC supply

Bitcoin whales are increasingly moving large amounts of BTC into spot ETFs, such as BlackRock's IBIT, through 'in-kind' transfers, a process allowed by a recent SEC policy change. Analysts suggest this trend is bullish because it removes Bitcoin from active circulation, effectively tightening supply. Reasons for this shift include tax deferral benefits, transforming decentralized wealth into traditional finance-recognized assets that allow for leverage and compliance, and enhanced security against physical threats. This evolution is creating a structural split between 'regulated Bitcoin' used as collateral and 'on-chain Bitcoin.' Experts project that these mechanical supply drains, even without new net inflows, combined with potential monetary easing, could push Bitcoin's price from around $108,000 to approximately $140,000 by mid-2026, as the 12 ETFs already hold about 6.8% of the circulating supply.

(Source：CryptoSlate)