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Bitcoin ETFs buy 5 times more BTC than miners in a week

Bitcoin ETFs buy 5 times more BTC than miners in a week

GrafaGrafa2024/10/28 20:37
By:Mahathir Bayena

In October, U.S. spot Bitcoin (CRYPTO:BTC) exchange-traded funds (ETFs) experienced a surge in inflows, accumulating over $3 billion. 

This robust demand has driven ETF issuers to purchase Bitcoin at a pace significantly exceeding the newly mined supply. 

Between October 21 and 25, the 11 spot Bitcoin ETFs collectively acquired 15,194 BTC, nearly five times the 3,150 BTC produced by miners during that period, according to data from HODL15Capital. 

These inflows, totaling around $1.83 billion, demonstrate substantial interest in the asset and a strong buying trend by ETF issuers. 

“If you sold any Bitcoin today, this week, or this year, it’s been bought by the ETFs. Demand for U.S. Bitcoin ETFs far exceeds new supply,” stated HODL15Capital. 

As of October 25, these ETFs held a combined total of 977,122 BTC, nearing the one million BTC milestone. 

BlackRock leads in holdings with approximately 403,714 BTC, accounting for nearly 2% of the total Bitcoin supply. 

Analysts have noted that if this trend continues, ETFs could soon surpass the holdings attributed to Bitcoin’s creator, Satoshi Nakamoto. 

“Not yet 10 months old and the ETFs are 97% of the way to holding 1 million BTC, and 87% of the way to passing Satoshi as the largest holder,” commented Bloomberg ETF analyst Eric Balchunas. 

Despite the expanding holdings, market analysts warn that the concentration of Bitcoin within these ETFs may introduce risks to market liquidity and price stability. 

Given Bitcoin’s relatively fixed supply, large-scale inflows or outflows could heighten price sensitivity, potentially impacting market dynamics and future volatility.

At the time of reporting, the Bitcoin price was $67,587.65.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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