June 10, 2024
Bitcoin ETF Absorbs 2 Months of BTC Supply in Early June
Latest Cryptocurrency News

Bitcoin ETF Absorbs 2 Months of BTC Supply in Early June

In the first week of June, spot Bitcoin ETF in the United States acquired an equivalent of around two months’ worth of the cryptocurrency’s mining supply. With inflows totaling approximately $1.83 billion, the 11 ETFs purchased 25,729 Bitcoin (BTC) between June 3 and 7. This amount is about eight times more than the 3,150 new BTC mined during the same period, according to data from HODL15Capital.

The weekly BTC buys of U.S. Bitcoin ETFs since their Jan. 11 launch. Source: HODL15Capital

Record-Breaking Weekly Bitcoin Acquisitions

The Bitcoin acquired during this week nearly matched the entire month of May, which saw purchases of 29,592 BTC, per HODL15Capital’s count. This marks the largest week of buying since mid-March when Bitcoin reached its current all-time high of $73,679. Since their January launch, the 11 ETFs have experienced net inflows of $15.69 billion, offsetting the $17.93 billion in net outflows from Grayscale’s fund, resulting in total assets under management (AUM) of around $61 billion.

Bitcoin’s Scarcity and ETF Growth

Bitcoin proponents often compare the cryptocurrency to “digital gold” due to its inherent scarcity, with only 21 million BTC ever to be issued. Nate Geraci, president of ETF Store, highlighted in a June 9 X post that Bitcoin ETF AUM is about 60% of that of the country’s gold ETFs. This is notable considering that gold ETFs have existed for 20 years, whereas Bitcoin ETFs have only existed for five months.

Bitcoin’s price hit a high of $71,093 on June 5, propelled by increased inflows to the U.S. Bitcoin ETF. This was the first time the asset surpassed $71,000 since May 21. Despite this peak, Bitcoin has struggled to break past its current high, with its price being “more heavily influenced by macroeconomic factors and geopolitical events,” according to crypto exchange co-founder “Radar Bear” in a June 7 interview.

Image by Pete Linforth from Pixabay

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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