- Bitcoin ETFs are withdrawing ten times the amount of BTC produced daily from the market, accelerating demand.
- Companies such as BlackRock, Fidelity and Grayscale manage 3.7% of total BTC, indicating strong institutional interest.
In the current cryptocurrency market, Bitcoin ETFs have become a key element, withdrawing ten times more BTC from the market than is generated on a daily basis. This development accelerates the demand for Bitcoin, marking a period of active acquisitions.
The recent increase in Bitcoin’s price is directly associated with spot ETF activity. Having to acquire BTC to accurately reflect the value of this cryptocurrency, they have created constant buying pressure since its introduction about a month ago.
Currently, accounting for all spot Bitcoin ETFs, its promoters hold approximately 728,000 BTC, worth $37 billion. This implies that companies such as BlackRock, Fidelity and Grayscale manage about 3.7% of the total BTC available.
It is worth noting that a considerable fraction of the 19.6 million BTC in circulation is considered lost. Determining the exact amount of coins lost is complicated, but Timothy Peterson of Cane Island Alternative Advisors estimates that about six million BTC are irretrievably missing.
ETF issuers, far from diminishing their buying interest, continue to acquire BTC at an acceleratingpace. A prime example is that, on February 13, firms such as BlackRock extracted 12,800 BTC from the market, more than ten times the number of Bitcoin produced daily, according to Apollo data.
Daily BTC production is around 900 coins
This behavior helps to understand why Bitcoin has achieved such a favorable performance, unlike traditional stock markets and even physical gold. Over the last week, Bitcoin has seen a 16% growth in value, currently trading at $51,856.
Accumulation by spot ETFs continues to rise, as evidenced by data on BTC holdings by major ETF promoters:
- Grayscale: 461,983 BTC
- BlackRock: 105,280 BTC
- Fidelity: 79,752 BTC
- Ark/21 Shares: 22,965 BTC
- Bitwise: 18,887 BTC
For those who wish to invest safely in Bitcoin, it is crucial to understand the basic principles of this cryptocurrency and to know the fundamental steps for an informed investment, taking into account the key aspects of this process.
We're witnessing total acceleration of #BTC ETF inflows.
First 20 days of Trading ~ 42K BTC Inflows
Last 4 Days of trading ~ 43k BTC Inflows 🤯
🚀🚀🚀 pic.twitter.com/IqvX7wI13b
— Thomas | heyapollo.com (@thomas_fahrer) February 15, 2024
The presence of these funds not only shows a growing integration of cryptocurrencies into the mainstream financial arena, but also raises questions about the dynamics of supply and demand in a market increasingly influenced by major financial institutions.
