Saturday, June 22, 2024

Bitcoin ETFs Gobble Up Massive Supply in First Week of June

This post was originally published on cryptonewsfarm.com

Bitcoin ETFs Gobble Up Supply, Driving Price Surge

Spot Bitcoin exchange-traded funds (ETFs) in the United States are making a significant impact on the cryptocurrency market. In the first week of June alone, these ETFs acquired a staggering amount of Bitcoin, equivalent to roughly two months’ worth of mining output.

Fueled by inflows of approximately $1.83 billion, the 11 Bitcoin ETFs purchased a total of 25,729 BTC between June 3rd and 7th. This represents a massive eight times more Bitcoin than the 3,150 mined during that same period, according to data from HODL15Capital.

This buying spree wasn’t just impressive on a weekly basis. It nearly matched the total amount of Bitcoin acquired by these ETFs throughout May (29,592 BTC) and marked the strongest week of buying since mid-March, when Bitcoin reached its current all-time high of $73,679.

Since their launch in January, these 11 ETFs have collectively raked in a net total of $15.69 billion. This figure even surpasses the net outflows of $17.93 billion experienced by Grayscale’s Bitcoin trust. As a result, the combined assets under management (AUM) for these Bitcoin ETFs now sit at a healthy $61 billion.

The limited supply of Bitcoin, capped at a total of 21 million coins ever to be issued, has been a key factor in its appeal as “digital gold” for many cryptocurrency enthusiasts.

Highlighting this rapid growth, Nate Geraci, president of ETF Store, noted in a recent post that Bitcoin ETF AUM currently stands at around 60% of the value held by gold ETFs in the United States. This is particularly noteworthy considering the much longer history of gold ETFs, which have been around for two decades compared to Bitcoin ETFs’ mere five months of existence.

The surge of inflows into U.S. Bitcoin ETFs coincided with a price spike for the cryptocurrency. On June 5th, Bitcoin touched a high of $71,093, marking the first time it surpassed $71,000 since May 21st, according to Cointelegraph Markets Pro data.

However, Bitcoin has faced some resistance in breaking through this new barrier. As crypto exchange co-founder “Radar Bear” explained to Cointelegraph on June 7th, Bitcoin’s price is currently more heavily influenced by broader economic factors and geopolitical events.

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Author: Sb

Read Also: Crypto Analysts: Altcoins Poised for Surge if Bitcoin Breaks $69,000 Resistance

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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