HomeNewsBitcoin ETF Boom Surpasses Miner Production: Halving to Propel Price to $100,000

Bitcoin ETF Boom Surpasses Miner Production: Halving to Propel Price to $100,000

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  • Investments in Bitcoin ETFs exceed mining production by more than ten times, reflecting an increase in demand.
  • BlackRock and Fidelity lead investments in Bitcoin, evidencing institutional interest in this cryptocurrency as an investment asset.

Recent activity in the Bitcoin ETF market highlights an increase in institutional investment in this sector, with a notable inflow of capital far exceeding the capacity of miners to produce new bitcoins.

Source: Blockchain.com

In the last two trading days, inflows into Bitcoin ETFs were recorded as exceeding more than ten times what the miners were able to produce.

BlackRock iShares Bitcoin Trust led with inflows of $374.7 million, followed by Fidelity’s Wise Origin Bitcoin Fund with $151.9 million, and the Ark 21Shares Bitcoin ETF with $40 million. Although there were outflows from Grayscale and Invesco Galaxy ETF funds, the net balance showed inflows of close to half a billion dollars.

Meanwhile, Bitcoin miners produced approximately 1,059 BTC, which equates to about $51 million, just 10% of the total absorbed by Bitcoin ETFs in the same period.

Bitcoin Production vs. ETF Demand

The contrast between daily Bitcoin production, approximately 1,059 BTC which equates to about $51 million, and the amount absorbed by ETFs highlights the growing gap between the limited supply of Bitcoin and an expanding demand.

This suggests upward pressure on the Bitcoin price as discussed in our portal video, as the ability to increase production in response to increased demand is limited.

Pompliano’s Outlook

The observations of Anthony Pompliano, a well-known Bitcoin supporter, offer a valuable perspective on this situation. Pompliano highlights Wall Street’s enormous appetite for Bitcoin, with demand exceeding daily production by 12.5 times .

This not only underscores the growing institutional interest but also the potential for Bitcoin shortages, considering that 80% of the total supply has not moved in the last six months.

According to Pompliano, this implies that ETFs have absorbed about 5% of Bitcoin’s marketable supply in just 30 days, a figure that highlights the intense concentration of demand and its potential effects on Bitcoin’s price.

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Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: info@ethnews.com Phone: +49 160 92211628