Investment vehicles focused on Bitcoin, known as spot Bitcoin ETFs, have recently acquired a staggering ten times the amount of Bitcoin produced by miners in a single day. On February 12, these funds amassed a total of 10,280 BTC, which equates to approximately 493.4 million dollars, dwarfing the 1,059 BTC output of miners valued at around 51 million dollars. This influx into ETFs is a clear indicator of the growing investor appetite for Bitcoin despite the comparatively lower outputs from mining operations.
Spot ETFs See Massive Inflows
Leading the charge, BlackRock’s IBIT attracted 374.7 million dollars, while Fidelity’s FBTC followed with 151.9 million dollars, and Ark 21Shares’ ARKB added another 40 million to the tally. Although there were some outflows from specific funds like Invesco’s BTCO and Grayscale, the net total represented a significant capital flow into the market. The trend mirrors previous activities, with a similar scenario unfolding on February 9, where ETFs absorbed in excess of 12,700 BTC, in contrast to the 980 BTC generated by mining.
Demand for Bitcoin Skyrockets
Analysts highlight this movement as a testament to Wall Street’s burgeoning interest in Bitcoin, as suggested by Bitcoin analyst Anthony Pompliano in his CNBC interview. He pointed out the immense market demand, citing a figure 12.5 times greater than the daily Bitcoin production. Additionally, he emphasized the scarcity of tradable Bitcoin, with 80% of the total supply remaining static over the past half-year, leaving only about 200 billion dollars worth of Bitcoin readily available for trading. The significant acquisition of Bitcoin by ETFs has effectively reduced the tradable supply by 5% within a month—a move that aligns with the increased interest from large financial institutions and investors.
The recent surge in the acquisition of Bitcoin through ETFs showcases a remarkable shift in investment strategies, with major funds like BlackRock and Fidelity driving up the demand for the cryptocurrency. The data underscores the magnetic appeal of Bitcoin to investors and signals a potential shift in how digital assets are being integrated into mainstream financial portfolios.
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