Bitcoin ETFs Absorb 10 Times More BTC Than Miners Produce
Date: 2024-02-13 Author: Dima Zakharov Categories: BLOCKCHAIN
Bitcoin ETFs Outpace Miner Production
Spot Bitcoin ETFs amassed a staggering amount of Bitcoin on Monday, far exceeding the output of miners. Preliminary data indicates that as of February 12th, spot Bitcoin ETFs received at least $493.4 million, equivalent to approximately 10,280 BTC. IBIT BlackRock led the inflow with a substantial $374.7 million, followed by FBTC Fidelity with $151.9 million and ARKB Ark 21Shares with $40 million. This surge was somewhat offset by outflows from Grayscale and Invesco, though net inflows amounted to nearly half a billion dollars.
On the same day, Bitcoin miners extracted around 1,059 BTC worth approximately $51 million, representing just 10% of the BTC collected by spot ETFs.
Rising Bitcoin Supply Relative to Price
A similar trend was observed on February 9th when ETFs received about 12,700 BTC or assets worth $541.5 million, compared to 980 BTC generated through mining. BlackRock led with an inflow of $250.7 million, followed by Fidelity with $188.4 million. The overall influx reached a record high for the day, with minimal outflows.
Wall Street's Growing Interest
Bitcoin pioneer Anthony Pompliano remarked on CNBC's Squawk Box that "Wall Street loves bitcoins," emphasizing their voracious buying activity. He highlighted that Wall Street is purchasing bitcoins at a rate 12.5 times higher than the network can produce, indicating a sustained upward momentum towards new record highs.
Pompliano also noted that approximately 80% of the total supply remained unchanged over the past six months, with only about $200 billion in BTC available for trading. Consequently, these ETFs have absorbed 5% of the entire Bitcoin trading supply within 30 days.
