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Bitcoin ETFs absorb ten times more than miner production in two days

TL;DR

  • Bitcoin ETFs got 10 times more money than miners in two days.
  • Big players like BlackRock and Fidelity led the ETF influx.
  • Bitcoin advocate Anthony Pompliano says Wall Street’s loving Bitcoin, with huge demand outstripping daily production.

Spot Bitcoin exchange-traded funds (ETFs) have experienced a surge in inflows, surpassing the production output of miners by over tenfold in the past two trading days. This unprecedented trend underscores the growing institutional interest in the leading cryptocurrency.

Inflows eclipse miner production

On Monday, February 12th, spot Bitcoin ETFs accumulated approximately $493.4 million, equivalent to around 10,280 Bitcoin. Notably, this influx far surpassed the output of Bitcoin miners for the same period, which amounted to only 1,059 BTC, valued at approximately $51 million.

BlackRock’s iShares Bitcoin Trust emerged as the frontrunner, attracting $374.7 million in inflows. Following closely behind, Fidelity’s Wise Origin Bitcoin Fund recorded $151.9 million in inflows, with an additional $40 million flowing into the Ark 21Shares Bitcoin ETF. 

While Grayscale saw outflows of $95 million and the Invesco Galaxy ETF experienced $20.8 million in outflows, the net inflows totaled nearly half a billion dollars.

Consistent trend and significant figures

This surge in ETF inflows mirrors a similar trend observed on February 9th, when aggregate inflows totaled approximately 12,700 BTC or $541.5 million. BlackRock continued to dominate with $250.7 million in inflows, while Fidelity followed with $188.4 million. 

Ark 21Shares also saw substantial inflows of $136.5 million. Despite Grayscale experiencing outflows of $51.8 million, the day witnessed a substantial increase in aggregate inflows.

During an interview on CNBC’s Squawk Box, Bitcoin advocate Anthony Pompliano highlighted Wall Street’s growing affinity for Bitcoin. Pompliano emphasized the significant demand for Bitcoin, which exceeds daily production by 12.5. 

He further noted that around 80% of Bitcoin’s total supply has remained dormant for six months. Additionally, he highlighted that only a fraction of Bitcoin’s market cap is actively tradable, with ETFs absorbing 5% of the tradable supply within 30 days.

Implications and market dynamics

The influx of institutional capital into Bitcoin ETFs signifies a pivotal moment for the cryptocurrency market. With traditional financial institutions increasingly embracing Bitcoin, the market landscape continues to evolve rapidly. This surge in ETF inflows underscores the growing confidence among investors in Bitcoin’s long-term potential as a store of value and hedge against inflation.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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James Kinoti

A crypto enthusiast, James finds pleasure in sharing knowledge on fintech, cryptocurrency as well as blockchain and frontier technologies. The latest innovations in the crypto industry, crypto gaming, AI, blockchain technology, and other technologies are his preoccupation. His mission: be on track with transformative applications in various industries.

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