Copy link
Increase text size
Decrease text size
Link copied

Bitcoin ETFs Absorb Two Months' BTC Mining Supply in First Week of June

Bitcoin ETFs acquired two months' worth of BTC mining supply in early June.

Tue, 11 Jun 2024, 02:22 am UTC

In the first week of June, U.S. Bitcoin ETFs absorbed nearly two months' worth of Bitcoin mining supply, acquiring 25,729 BTC valued at $1.83 billion, highlighting the ETFs' market dominance.

U.S. Bitcoin ETFs Acquire 25,729 BTC, Dominating Market Dynamics

In a recent report by Cointelegraph, Spot Bitcoin, exchange-traded funds (ETFs) in the United States, acquired the equivalent of approximately two months' worth of the cryptocurrency's mining supply during the first week of June.

Let's put the scale of this Bitcoin acquisition into perspective. According to data from HODL15Capital, the 11 ETFs acquired a staggering 25,729 Bitcoin during the June 3–7 trading week, which is approximately $1.83 billion. This amount is approximately eight times greater than the 3,150 new BTC mined during the same period, underscoring the dominance of ETFs in the market.

This week's Bitcoin acquisition is not just significant; it's historical. According to HODL15Capital's count, the total amount of Bitcoin obtained in the week was 29,592 BTC, nearly equivalent to May. This marks the most significant week of buying since mid-March when Bitcoin reached its current all-time high of $73,679. It highlights the ongoing impact of ETFs on Bitcoin's price and market dynamics.

Since their January debut, the 11 ETFs have experienced $15.69 billion in net inflows, which includes $17.93 billion in net outflows from Grayscale's fund. The total assets under management (AUM) of the 11 ETFs is approximately $61 billion.

Bitcoin advocates have long referred to cryptocurrency as "digital gold" due to its inherent scarcity mechanism, which predicts that only 21 million BTC will ever be issued.

Nate Geraci, the president of the ETF Store, observed in a June 9 X post that the AUM of Bitcoin ETFs in the country is approximately 60% of that of gold ETFs, even though gold ETFs have existed for 20 years and Bitcoin ETFs have only been trading for five months.

Bitcoin Surpasses $71,000 as ETF Inflows Surge, Faces Macroeconomic Hurdles

According to Cointelegraph Markets Pro, Bitcoin reached a high of $71,093 on June 5 due to the significant increase in funds flowing into U.S. Bitcoin ETFs. This marks the first time the asset has surpassed $71,000 since May 21.

According to "Radar Bear," the co-founder of the crypto exchange, the cryptocurrency has encountered difficulty surpassing its current high due to its price being "more heavily influenced by macroeconomic factors and geopolitical events" (Cointelegraph, June 7).

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

Back to top
Copyright ⓒ TokenPost. All Rights Reserved.