Bitcoin ETFs Buy 18,644 BTC, Outpacing Mining Production by 500%

US-based Bitcoin exchange-traded funds (ETFs) have been purchasing Bitcoin at a rate that significantly outpaces mining production, indicating a surge in institutional demand for the cryptocurrency. Data reveals that ETFs acquired 18,644 Bitcoin over the past week, nearly six times the 3,150 BTC mined during the same period. This disparity highlights a supply imbalance that could influence future price movements.

BlackRock’s iShares Bitcoin Trust (IBIT) has been a standout performer in this trend. The fund has experienced almost $2.5 billion in inflows over five trading days and has maintained a streak of 17 consecutive days without an outflow. Notably, IBIT added 5,613 BTC worth $530 million in a single day, marking 15 straight days of inflows for the product. Total inflows since its launch have exceeded $44 billion.

BlackRock has also increased its own stake in IBIT. During the first quarter of 2025, the asset manager boosted its holdings by 124%, bringing its total investment in the ETF to $314 million. This significant investment underscores BlackRock's confidence in the future of Bitcoin and its ETF product.

Despite these strong inflows, spot Bitcoin ETFs face distribution hurdles. Many wealth management platforms still restrict or prohibit financial advisers and brokers from recommending or providing access to Bitcoin ETPs. This limitation could be a significant factor in the future growth of these ETFs.

Bitcoin’s price movements have shown mixed signals recently. The cryptocurrency gained 4% in early May to reach a six-week high of $97,700 on May 2. However, it has since retreated to around $94,000 – roughly the same price it traded at a week ago. The current market dynamics may be creating conditions for future price increases. Crypto analyst Kyledopps reported that “the froth is gone — the reset is real,” noting that Bitcoin’s MVRV (Market Value to Realized Value) ratio has touched its long-term mean at 1.74. This metric suggests unrealized gains have been flushed out, potentially setting up conditions for recovery.

Market observers are watching for signs of Bitcoin pushing toward the $100,000 level. The CoinGape Bitcoin price prediction indicator suggests the asset will remain around $94,600 over the next month. However, continued ETF inflows could provide additional momentum for future price increases.

Spot Bitcoin ETFs have grown into a nearly $110 billion investment category despite these distribution limitations. This growth comes as the SEC continues to evaluate other crypto ETF applications. With over 70 US crypto ETFs awaiting SEC decisions this year, the market is watching for regulatory developments that could further expand institutional access to digital assets.