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Bitcoin ETF inflows destroy large numbers of new issuances

Bitcoin ETF inflows destroy large numbers of new issuances

The first American spot exchange-traded funds (ETFs) for Bitcoin (BTC) appeared in early January and immediately gained popularity. In fact, two of the stock market funds had a better debut than any other ETF in the last 30 years. Demand for the funds is already high – so great that they are consuming all the BTC that Bitcoin miners produce every day.

Bitcoin exchange funds remain popular

According to data from Farside Investors, the 10 spot ETFs recorded net inflows of $493.4 million on Monday. This was not an absolute record. Last Friday, funds grew by $541.5 million, according to Farside. On the first day of trading, BlackRock’s ETF, IBIT, rose by more than a billion US dollars.

BlackRock’s fund was again the most popular fund with net growth of $374.7 million. Fidelity’s (FBTC) came pretty close at $151.9 million. The third fund, ARKB from ARK Invest and Invesco, was significantly less popular at $40.0 million.

Grayscale’s GBTC shrank again on Monday, by $95.0 million to be exact. Nevertheless, the results were relatively good. In total, the growth corresponds to approximately 10,280 BTC.

Bitcoin spot ETFs grow faster than what miners produce

If you compare the numbers with those of Bitcoin miners, the picture looks even better. According to Blockchain.com, Bitcoin miners produced a total of 1,059 BTC on Monday, worth about $51 million. ETF growth on Monday was more than 10 times the growth of all outstanding Bitcoins.

The numbers vary slightly from day to day. Friday’s growth was slightly higher at $541.5 million as miners mined 980 BTC worth $45 million. On Thursday, ETF inflows were $405.0 million with outstanding balance delivery then grew by 906 BTC, worth about $40 million. Some days are therefore slightly cheaper for ETFs than others.

At the same time, we must emphasize that ETF trading stops on the weekend while Bitcoin miners continue throughout the week. However, demand for ETFs is still more than seven times production. The demand for ETFs is therefore enormous.

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