Bitcoin ETFs are sucking up 10X more BTC than miners can produce
Spot Bitcoin exchange-traded funds (ETFs) scooped up ten times more Bitcoin ( BTC ) than what miners were able to produce on Monday.
According to preliminary figures, at least $493.4 million or roughly 10,280 BTC net inflowed into spot Bitcoin ETFs as of Feb. 12.
BlackRock’s IBIT saw the lion’s share with a huge $374.7 million inflow. Meanwhile, Fidelity’s FBTC fund saw a $151.9 million inflow, and there was $40 million for Ark 21Shares’ ARKB fund. This was slightly offset by Grayscale outflows of $95 million and $20.8 million from Invesco’s BTCO, though net inflow was almost half a billion dollars.
On the same day, Bitcoin miners produced around 1,059 BTC worth roughly $51 million, according to Blockchain.com, just 10% of the amount of BTC being hoovered up by spot ETFs.
Bitcoin supply growth against price. Source: Blockchain.comA similar trend was also observed on Feb. 9, with approximately 12,700 BTC or $541.5 million worth of the asset flowing into the ETFs in aggregate, compared to 980 BTC worth around $45 million added through mining.
BlackRock led the way with a $250.7 million inflow, while Fidelity again came second at $188.4 million. Ark 21Shares saw large inflows of $136.5 million, while Grayscale outflows fell to their lowest level for the week at $51.8 million, resulting in the bumper day aggregate inflow.
Related: ‘Big volume day’ for BlackRock as Bitcoin ETFs notch $1B volume
On Feb. 12, Bitcoin pioneer Anthony Pompliano commented that “Wall Street loves Bitcoin” in an interview on CNBC’s Squawk Box.
“There is 12.5x more demand for Bitcoin than what is being produced on a daily basis.”
Around 80% of the total supply has not moved in the past six months, he said before adding that only around $200 billion in BTC is tradable, so these ETFs “have sucked up 5% of the entire tradable supply of Bitcoin in 30 days.”
Wall Street LOVES bitcoin.
— Pomp (@APompliano) February 12, 2024
They are buying up 12.5x more bitcoin per day than the network can produce.
The march to a new all-time high is underway if this continues.
I explain this on my segment with @SquawkCNBC this morning. pic.twitter.com/0zRc3RQ4hY
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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