Bitcoin Price Soars as Spot ETFs Amass Ten Times More BTC Than Miners’ Production

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Bitcoin price has surged past the $50,000 mark, fueled by an unprecedented influx of investments from spot Bitcoin exchange-traded funds (ETFs).

These ETFs have managed to accumulate a staggering ten times more Bitcoin (BTC) than what miners were able to produce on Monday.

More specifically, data shows that approximately $493.4 million, equivalent to around 10,280 BTC, flowed into spot Bitcoin ETFs as of February 12.

Among these funds, BlackRock’s IBIT emerged as the clear leader, attracting a massive $374.7 million.

Fidelity’s FBTC fund followed closely behind with a substantial inflow of $151.9 million, while Ark 21Shares’ ARKB fund secured $40 million.

Despite these significant inflows, there were minor outflows of $95 million from Grayscale and $20.8 million from Invesco’s BTCO, resulting in a net inflow of nearly half a billion dollars.

In contrast, Bitcoin miners only produced approximately 1,059 BTC, equivalent to roughly $51 million, on the same day, according to data from Blockchain.com. 

This represents only 10% of the amount of BTC accumulated by spot ETFs.

A similar trend was observed on February 9th, with spot ETFs capturing approximately 12,700 BTC, worth a staggering $541.5 million, while mining contributed a mere 980 BTC, valued at around $45 million.

BlackRock and Fidelity Dominate ETF Inflows

BlackRock has been taking the lead in terms of inflows, with an inflow of $250.7 million on February 9.

Fidelity followed closely behind with an inflow of $188.4 million, and Ark 21Shares witnessed substantial inflows of $136.5 million.

Grayscale’s outflows decreased to their lowest level of the week at $51.8 million, resulting in an overall bumper day aggregate inflow.

In a recent interview on CNBC’s Squawk Box, Bitcoin pioneer Anthony Pompliano highlighted Wall Street’s growing affinity for Bitcoin.

He emphasized that there is a demand for Bitcoin that is 12.5 times greater than its daily production.

Wall Street LOVES bitcoin.

They are buying up 12.5x more bitcoin per day than the network can produce.

The march to a new all-time high is underway if this continues.

I explain this on my segment with @SquawkCNBC this morning. pic.twitter.com/0zRc3RQ4hY

— Pomp (@APompliano) February 12, 2024

Pompliano noted that approximately 80% of the total Bitcoin supply has remained stagnant over the past six months, and only around $200 billion worth of BTC is actively tradable.

Thus, the spot ETFs have managed to accumulate 5% of the entire tradable supply of Bitcoin in just 30 days, illustrating the immense appetite for the cryptocurrency.

Spot BTC ETFs See Increased Trading Volume

Last week, spot Bitcoin ETFs saw their total daily trading volume exceed $1 billion, with BlackRock emerging as the top performer.

Furthermore, BlackRock and Fidelity’s spot Bitcoin ETFs have emerged among the top 10 funds with the highest inflows in January.

BlackRock’s IBIT secured the eighth position with an estimated $2.6 billion in net flows, while FBTC claimed the tenth spot, attracting $2.2 billion in net flows.

In contrast, the Grayscale Bitcoin Trust (GBTC) experienced significant outflows, with an estimated $5.7 billion exiting the fund in January, marking the second-highest outflows among ETFs.

Still, during the trading days from January 26 to February 2, the inflows into the new spot Bitcoin funds surpassed the outflows from GBTC, which experienced its second-lowest outflow day on February 2, amounting to $144.6 million.

As of now, Bitcoin price is hovering around the $50,000 mark, up by more than 4% over the past day.

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