Bitcoin ETF Inflows Outpaces Mining by Ten Times
BITmarkets Team
Feb 16, 2024
Spot Bitcoin exchange-traded funds (ETFs) accumulated Bitcoin at a rate ten times higher than the production by miners on Monday, February 12.
Initial data suggests that approximately $493.4 million, equivalent to around 10,280 Bitcoin, flowed into spot Bitcoin ETFs as of February 12.
The iShares Bitcoin Trust by BlackRock recorded the largest share, attracting a substantial $374.7 million.
Additionally, Fidelity’s Wise Origin Bitcoin Fund witnessed inflows of $151.9 million, while Ark 21Shares Bitcoin ETF received $40 million.
Although there were outflows of $95 million from Grayscale and $20.8 million from the Invesco Galaxy ETF, the net inflows amounted to nearly half a billion dollars.
Simultaneously, Bitcoin miners generated approximately 1,059 BTC valued at roughly $51 million on the same day, as reported by Blockchain.com.
This accounted for only 10% of the BTC influx into spot ETFs.
A similar pattern emerged on February 9, with approximately 12,700 BTC or $541.5 million worth of assets flowing into ETFs collectively, compared to 980 BTC worth about $45 million added through mining.
BlackRock led with a $250.7 million inflow, followed by Fidelity with $188.4 million.
Ark 21Shares experienced significant inflows of $136.5 million, while Grayscale recorded its lowest outflows for the week at $51.8 million, resulting in substantial aggregate inflows.
Bitcoin advocate Anthony Pompliano remarked on CNBC's Squawk Box on February 12 that "Wall Street loves Bitcoin," highlighting a demand for Bitcoin that exceeds daily production by 12.5 times.
He noted that around 80% of the total Bitcoin supply has remained stationary in the past six months, adding that only approximately $200 billion in BTC is available for trading.
Consequently, these ETFs have absorbed 5% of the entire tradable supply of Bitcoin in just 30 days.
Sources:
https://cointelegraph.com/news/bitcoin-etfs-scoop-10-x-more-btc-than-mined
https://www.blockchain.com/explorer/charts/total-bitcoins
