Bitcoin ETFs Absorb 600% More Than Miners Produce

US Bitcoin ETFs have made significant purchases in the past week, acquiring nearly six times more Bitcoin than what was produced by miners. This substantial buying activity underscores the growing institutional interest in Bitcoin, as ETFs continue to absorb a large portion of the newly mined supply. The demand from ETFs has been robust, indicating a strong bullish sentiment in the market. This trend suggests that institutional investors are increasingly viewing Bitcoin as a valuable asset, driving up its demand and potentially influencing its price trajectory.

The acquisition of 18,644 BTC through ETFs, coupled with the ETF purchases, has been sufficient to absorb all the mining emissions. This highlights the significant role that ETFs play in the Bitcoin market, as they not only provide liquidity but also act as a stabilizing force by absorbing excess supply. The strong demand from ETFs reflects the broader market sentiment, where Bitcoin is seen as a store of value and a hedge against inflation.

This accumulation by institutions and ETF issuers represents almost six times the amount of the asset being produced since miners only generate 450 coins per day. The total inflow for the past five trading days was around $1.8 billion, with a net outflow on April 30. There has only been one outflow day since April 16, as the inflows have mirrored market recovery. Last week’s accumulation followed an increase in BTC spot prices in early May when the asset gained 4% to reach a six-week high of $97,700 on May 2. However, the asset has since retreated to the $94,000 level, which is the same price it traded at this time seven days ago.

BlackRock’s iShares Bitcoin Trust (IBIT) is the industry leader, having seen almost $2.5 billion in inflows over the past five trading days and a streak of 17 days without an outflow. This highlights the significant role that ETFs play in the Bitcoin market, as they not only provide liquidity but also act as a stabilizing force by absorbing excess supply. The strong demand from ETFs reflects the broader market sentiment, where Bitcoin is seen as a store of value and a hedge against inflation.

“Spot Bitcoin ETFs have surged into a nearly $110 billion category, despite facing significant distribution hurdles,” said ETF Store president. He added that many wealth management platforms still restrict or prohibit financial advisers and brokers from recommending or providing access to Bitcoin ETPs. “That’s why I’ve said spot bitcoin ETFs are operating with one hand tied behind their backs. Imagine what might happen as these restrictions are lifted.”