Over the past few days, the crypto market has seen significant inflows of capital through spot Bitcoin ETFs. According to data, inflows into these ETFs have far outstripped daily production by Bitcoin miners, a sign of growing interest from institutional investors.
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Record inflows into Bitcoin ETFs place trailing miners
As we gradually approach halving, ETFs are outpacing miners’ production. Indeed, on February 12 alone, no less than $493 million entered the market in these Spot BTC ETFs, equivalent to 10,280 Bitcoins. By way of comparison, miners generated only 1059 Bitcoins that day, worth $51 million – 10 times less.
Three ETFs captured the majority of inflows: IBIT from BlackRock recorded record inflows of $375 million on February 12. Fidelity and Ark 21Shares also benefited from significant inflows, of $152 million and $40 million respectively.
The same trend was observed on February 9, when 541 million was injected into ETFs compared with $45 million for miners. Here again, BlackRock leads the way with 251 million contributions, followed by Fidelity ($188 million) and Ark 21Shares ($137 million).
These massive movements of capital are revealing. They testify to traditional finance’s growing interest in cryptos and Bitcoin in particular.
Market demand considerably outstripping supply, a positive indicator for the market!
By absorbing the equivalent of 5% of the total supply of tradable Bitcoins in just 30 days, ETFs show that demand far outstrips supply. According to Anthony Pompliano, a well-known investor, there is 12.5 times more demand than is produced on a daily basis.
This influx to ETF Bitcoin is part of a more global context of encouraging signals for Bitcoin. Its adoption and that of other cryptocurrencies continues to grow.
Indeed, many specialists believe that the upside potential is significant: the Bitcoin could be back on track this year its all-time record of $69,000, or even surpass it.
In this buoyant context, the enthusiasm of institutional investors observed through ETFs is an additional positive signal that should not be overlooked. The convergence of all these factors augurs well for the crypto market this year.
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.