Bitcoin ETFs Absorb two Months BTC Mining Supply in a Week

  • Spot Bitcoin Exchange Traded Funds (ETFs) in the US have reportedly acquired approximately 25,729 Bitcoin in the week ending June 7. 
  • This amount matches two months of crypto mining supply and more than eight times the new BTC mined within the week

The spot Bitcoin Exchange-Traded Funds (ETFs) in the US had 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 June 7, equivalent to two months’ worth of the crypto mining supply. Specifically, the amount acquired appears more than eight times the 3,150 new BTC mined within the same period. Also, the amount of Bitcoin acquired within the week alone is almost as much as the 29,592 BTC purchased in the entire of May. Per our data, this is the biggest week of buying since mid-March when Bitcoin reached a new all-time high of $73,679. 

Spot Bitcoin ETFs Outperform Gold ETFs in Pace

Since the launch of the 11 ETFs in January, a net inflow of $15.69 billion has been recorded. Grayscale’s fund has, however, recorded a net outflow of $17.93 billion with a total Assets Under Management (AUM) of $61 billion. 

Commenting on the ETF growth so far, ETF Store president Nate Geraci disclosed in a post that spot Bitcoin ETFs have nearly 60% AUM of gold ETFs despite the latter being in existence for 20 years. Similarly, Ripple CEO Brad Garlinghouse believes that Bitcoin ETFs have outperformed Gold ETFs as reported by Crypto News Flash. 

Amid the surge of inflows to the US Bitcoin ETFs, the BTC price recorded a short rally to touch the $71,093 price point on June 5. Our data shows that the last time Bitcoin reached the $71k mark was May 21. Interestingly, several market participants find this price move disappointing considering the billions in ETF inflows. Our records on June 7 show that the US spot ETFs had recorded a 19-day streak of inflows. However, the price had pulled back to $69k at press time after the asset declined by 0.01% in the last 24 hours 

Why ETF Flow Does Not Match the Price Move

In explaining this confusion, Capriole Investments founder Charles Edwards disclosed that the ETF flow is not strong enough to exceed the selling pressure of the entire ecosystem. Similarly, crypto trader Christopher Inks explained that the Bitcoin price is affected by multiple products including spot, futures, ETFs, and options. To him, the price at any point in time is a product of all of these, not just one of these.

Joining the conversation was crypto exchange co-founder Radar Bear who admitted that ETFs are important, however, the Bitcoin price is mostly a reflection of macroeconomic factors and geopolitical events. 

Regardless of these positions, an analyst is optimistic that Bitcoin could breach its all-time high if the positive flows into ETFs continue. For independent trader Jelle, the asset is “wrestling” with resistance from the $72,000 psychological level, and could only overcome it with massive ETF demand, and neutral funding. Adding to this positive outlook, pseudonymous trader and analyst Moustache has observed that Bitcoin is about to cross a key resistance level on its five-day chart. When this happens, the $80k price point could be reached in no time. 

Every 4 years, this cross signals the final parabolic run for Bitcoin. 2012-2016-2020-2024. The 2024 cross is just around the corner. Wouldn’t fade such signals to be honest. A few months full of fun could lie ahead.

 


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