U.S. Bitcoin ETFs See Record Inflows, Acquiring Two Months' Worth of Bitcoin Mining Supply
Summary:
Last week, U.S Bitcoin exchange-traded funds (ETFs) bought an amount of Bitcoin equivalent to about two months of the cryptocurrency's mining supply. The 11 funds invested around $1.83 billion, buying 25,729 Bitcoins. This nearly equals the entire amount of Bitcoin purchased in May, marking the most significant week of buying since mid-March. Since their launch in January, these ETFs have received $15.69 billion in net inflows. Despite only operating for five months, Bitcoin ETF's assets under management are about 60% of that of gold ETFs.
Last week, Bitcoin exchange-traded funds (ETFs) in the United States purchased a Bitcoin amount equivalent to roughly two months of the cryptocurrency's mining yield. During the trading week of June 3 through 7, these 11 funds invested around $1.83 billion, acquiring 25,729 Bitcoins, a figure approximately eightfold higher than the 3,150 newly mined Bitcoins within the same timeframe, as reported by HODL15Capital. The quantity of Bitcoin secured just within a week was nearly the same as the entire May's purchase, which was 29,592 Bitcoins. This is noted as the highest buying week since mid-March when Bitcoin peaked at its record high of $73,679.
Reflecting on their performance since inception on Jan 11, these U.S. Bitcoin ETFs have recorded a net inflow of $15.69 billion. This sum includes a net outflow of $17.93 billion from Grayscale's fund and has led to an overall asset management value of about $61 billion. Bitcoin, often labelled as "digital gold" due to its inherent limited supply of only 21 million coins, isn't failing to stand up to this expectation.
Nate Geraci, president of the ETF Store, pointed out in a June 9 post that despite operating for only five months compared to 20 years for gold ETFs, Bitcoin ETF's assets under management is now about 60% of that of gold ETFs. The remarkable inflow into U.S Bitcoin ETFs saw Bitcoin's price peak at $71,093 last week, its highest since May 21 as cited by Cointelegraph Markets Pro.
Despite being in the limelight, Bitcoin has had trouble surpassing its standing record high, with its cost being dictated more by macroeconomic events and geopolitical factors, shared that "Radar Bear", a co-founder of a cryptocurrency exchange, in a discussion with Cointelegraph last week.
Published At
6/10/2024 8:54:44 AM
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