Bitcoin ETFs Outmuscle Miners; Wall Street's Demand for BTC Skyrockets
Summary:
Bitcoin exchange-traded funds (ETFs) have reportedly acquired ten times more Bitcoin (BTC) than what miners could produce on Monday, Feb 12, with BlackRock’s IBIT seeing significant inflow of $374.7 million. According to Bitcoin pioneer, Anthony Pompliano, Wall Street is buying 12.5 times more Bitcoin than what is generated daily, showing sky-high demand for the cryptocurrency. He also revealed that around 80% of Bitcoin's total supply has remained unmoved for the past six months, and that ETFs have managed to secure 5% of the whole tradable supply of Bitcoin within a month.
On Monday, Bitcoin exchange-traded funds (ETFs) captured a volume of Bitcoin (BTC) that was tenfold what miners could generate. Preliminary data indicates that by Feb. 12, an estimated $493.4 million or roughly 10,280 BTC net entered into Bitcoin spot ETFs. The major part of this influx was captured by BlackRock’s IBIT, attracting an impressive $374.7 million. The FBTC fund from Fidelity recorded a $151.9 million inflow, with Ark 21Shares' ARKB fund securing $40 million. This flourishing influx was somewhat balanced by withdrawals from Grayscale and Invesco’s BTCO amounting to $95 million and $20.8 million respectively, but the total net inflow was still close to half a billion dollars. Bitcoin miners were able to manufacture about 1,059 BTC, valued at approximately $51 million, that day, as per Blockchain.com figures, a mere tenth of the Bitcoin volume absorbed by the spot ETFs. The data reveals a similar dynamic on Feb. 9 when ETFs accumulated roughly 12,700 BTC worth about $541.5 million, while miners produced 980 BTC valued at around $45 million. BlackRock was again the dominant player with Fidelity trailing in the second spot. Ark 21Shares also recorded a significant inflow. Meanwhile, outflows from Grayscale hit their lowest point for the week resulting in an overall bullish day. Anthony Pompliano, Bitcoin pioneer, declared that “Wall Street is in love with Bitcoin” during his appearance on CNBC’s Squawk Box on Feb. 12. He mentioned the staggering discrepancy between Bitcoin demand and its daily production, stating that Wall Street is acquiring 12.5 times more Bitcoin than what is generated daily. Pompliano also shared that about 80% of total Bitcoin supply remained dormant for the past six months, pointing out that only around $200 billion worth of BTC is actually up for trade. He concluded that ETFs "have managed to absorb 5% of the entire tradable supply of Bitcoin within the span of a month.
Published At
2/13/2024 9:05:15 AM
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