ETFs
Bitcoin ETFs Absorb Two Months of BTC Mining Supply in One Week
- Spot Bitcoin exchange-traded funds (ETFs) in the United States reportedly acquired approximately 25,729 Bitcoins during the week ending June 7.
- This amount corresponds to two months of crypto mining supply and more than eight times the new BTC mined during the week..
Bitcoin exchange-traded funds (ETFs) in the United States saw a huge turnaround in the first week of June with an inflow of $1.83 billion.
According to reports, the 11 spot ETFs acquired approximately 25,729 Bitcoin between June 3 and 7, equivalent to two months of crypto mining supply. Specifically, the amount acquired appears more than eight times higher than the 3,150 new BTC mined during the same period. Furthermore, the amount of Bitcoin acquired in the week alone is almost equivalent to the 29,592 BTC purchased during the month of May. According to our data, this is the biggest week of purchases since mid-March, when Bitcoin reached a new all-time high of $73,679.
Spot Bitcoin ETFs outperform gold ETFs at pace
Since launch of 11 ETFs in January, a net inflow of $15.69 billion was recorded. Grayscale’s fund, however, recorded a net outflow of $17.93 billion with total assets under management (AUM) of $61 billion.
Commenting on the growth of ETFs so far, ETF Store President Nate Geraci revealed in an article that Bitcoin ETFs represent almost 60% of gold ETF assets under management, although the latter have been around for 20 years. Similarly, Brad Garlinghouse, CEO of Ripple, believes that Bitcoin ETFs have outperformed Gold ETFs. reported by Crypto News Flash.
Amid the influx of capital into US Bitcoin ETFs, the BTC price recorded a short rise to reach the $71,093 price level on June 5. Our data shows that the last time Bitcoin hit the $71,000 mark was on May 21. Interestingly, several market participants find this price development disappointing given the billions of ETF inflows. Our data from June 7 shows that US cash ETFs experienced a 19-day streak of inflows. However, the price had returned to $69,000 at press time after the asset declined by 0.01% over the past 24 hours.
Why ETF Flow Doesn’t Match Price Action
In explaining this confusion, Capriole Investments founder Charles Edwards revealed that ETF flow is not strong enough to overcome the selling pressure of the entire ecosystem. Similarly, crypto trader Christopher Inks explained that the price of Bitcoin is affected by several products, including spot, futures, ETFs and options. For him, the price at any time is the product of all these elements, not just one of them.
Radar Bear, co-founder of the cryptocurrency exchange, joined the conversation and admitted that ETFs are important, but the price of Bitcoin primarily reflects macroeconomic factors and geopolitical events.
Regardless of these positions, one analyst is optimistic that Bitcoin could break its all-time high if positive flows into ETFs continue. For independent trader Jelle, the asset is “fighting” against resistance from the psychological level of $72,000 and can only overcome it with massive ETF demand and neutral funding. Adding to this positive outlook, pseudonymous trader and analyst Mustache observed that Bitcoin is on the verge of breaking through a key resistance level on its five-day chart. When that happens, the $80,000 price tag could be reached in no time.
Every 4 years, this crossover marks the final parabolic run for Bitcoin. 2012-2016-2020-2024. The 2024 cross country is fast approaching. To be honest, it wouldn’t make such signals disappear. A few months full of fun could await us.