April 19, 2024
ETFs Hoover Up Bitcoin: Demand Surpasses Miner Production by 10-Fold
Bitcoin ETF

ETFs Hoover Up Bitcoin: Demand Surpasses Miner Production by 10-Fold

In a striking turn of events, spot Bitcoin exchange-traded funds (ETFs) have outpaced miner production by a staggering margin, with inflows reaching unprecedented levels, according to recent data.

On Monday, Feb. 12, spot Bitcoin ETFs absorbed approximately $493.4 million, equivalent to around 10,280 Bitcoin. This influx of capital far exceeded the output of Bitcoin miners for the same day, which amounted to roughly 1,059 BTC valued at approximately $51 million, as reported by Blockchain.com. This discrepancy highlights a substantial increase in institutional interest and investment in Bitcoin through ETFs.

Leading the charge was BlackRock’s iShares Bitcoin Trust, which garnered a substantial $374.7 million in inflows. Fidelity’s Wise Origin Bitcoin Fund followed closely behind with $151.9 million, while the Ark 21Shares Bitcoin ETF saw inflows of $40 million. Despite some outflows, including $95 million from Grayscale and $20.8 million from the Invesco Galaxy ETF, net inflows totalled nearly half a billion dollars.

This trend was not isolated to Feb. 12 alone. On Feb. 9, ETFs saw an influx of approximately 12,700 BTC or $541.5 million, compared to just 980 BTC worth around $45 million added through mining efforts. BlackRock again led the way with a $250.7 million inflow, followed by Fidelity with $188.4 million. Ark 21Shares saw significant inflows of $136.5 million, while Grayscale’s outflows decreased to $51.8 million.

Bitcoin advocate Anthony Pompliano underscored the significance of these developments in an interview on CNBC’s Squawk Box, stating, “Wall Street loves Bitcoin.” He noted that there is “12.5 times more demand for Bitcoin than what is being produced daily.” Pompliano highlighted that around 80% of the total Bitcoin supply has not moved in the past six months, indicating strong holding sentiment among investors. Additionally, he pointed out that only around $200 billion in BTC is tradable, implying that ETFs have absorbed “5% of the entire tradable supply of Bitcoin in 30 days.”

The surge in demand for Bitcoin ETFs reflects growing institutional confidence in the digital asset as a store of value and hedge against inflation. As Wall Street continues to embrace Bitcoin, the cryptocurrency market is witnessing a significant shift in dynamics, with ETFs playing an increasingly influential role in shaping investor sentiment and market trends.

Image: Wallpapers.com

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