BlackRock has reportedly bought a staggering 11,500 Bitcoin (
$110,171.00 ) from the available supply during the latest dip since the launch of its spot Bitcoin ( $110,171.00 ) ETF.
This amount is significant, considering that only 900 BTC are issued daily. The purchase by BlackRock effectively represents about 13 days’ worth of Bitcoin ( $110,171.00 ) production being absorbed by a single player.
BlackRock iBIT Bitcoin ( $110,171.00 ) and Cash Holdings (Source)
The asset manager’s CEO, Larry Fink, recently said his views on Bitcoin ( $110,171.00 ) have evolved significantly over the years, and he now sees it as a “viable asset class.”
Supply crunch
Based on data, the iShares Bitcoin ( $110,171.00 ) Trust (IBIT) Spot ETF managed only around 25% of the trading volume over the same two-day period. From this, one could infer that approximately 46,000 BTC were removed from the system over the past two days, with influences from other players like Grayscale Bitcoin ( $110,171.00 ) Trust (GBTC).
If this trend continues, the Bitcoin ( $110,171.00 ) market could face a severe supply crunch. With an estimated 46,000 BTC being absorbed in two days, which equates to 23,000 BTC per day, this rate is about 25.5x the daily production of Bitcoin ( $110,171.00 ) .
The substantial uptake by U.S. ETFs, not to mention the additional demand from retail investors and other global ETFs, suggests a tightening of available Bitcoin ( $110,171.00 ) supply.
Despite the fluctuations in Bitcoin ( $110,171.00 ) ’s price, the underlying asset remains resilient. Despite the high fees associated with GBTC, the successful launch of the Bitcoin ( $110,171.00 ) ETF is a strong indication of growing institutional interest. It could herald a new era of scarcity in the Bitcoin ( $110,171.00 ) market.
ETF inflows hit $819M
The first two trading sessions following the approval of new Bitcoin ( $110,171.00 ) exchange-traded funds (ETFs) experienced substantial inflows totaling $1.4 billion. After accounting for outflows from GBTC, the net total inflows across all Bitcoin ( $110,171.00 ) -related products amounted to $819 million.
A breakdown of this activity shows a remarkable volume of 500,000 individual trades, contributing to a total trading volume of $3.6 billion. BlackRock’s iShares Bitcoin ( $110,171.00 ) Trust (IBIT) led the pack in this initial surge, which garnered $497.7 million in total flows.
The Fidelity Advantage Bitcoin ( $110,171.00 ) ETF (FBTC) was close behind, amassing $422.3 million. Bitwise (BITB) also significantly impacted, attracting $237.90 million in investments.
In contrast, the Grayscale Bitcoin ( $110,171.00 ) Trust (GBTC), a pre-existing product, saw an outflow of $579 million during the same period. This shift is partly attributed to investors opting for the new Bitcoin ( $110,171.00 ) ETFs offering lower fees.
This trend aligns with earlier forecasts by ETF analysts, who anticipated that Bitcoin ( $110,171.00 ) ETFs could attract around $10 billion in their first year of operation. It’s worth noting that GBTC is one of the largest holders of Bitcoin ( $110,171.00 ) , managing over $27 billion.
BTC Price & Market Data
At the time of press, Bitcoin ( $110,171.00 ) is ranked #1 by market cap and the BTC price is up 0.06% over the past 24 hours. BTC has a market capitalization of $840.62 billion with a 24-hour trading volume of $21.04 billion. Learn more about BTC ›
BTCUSD Chart by TradingView
Market summary
At the time of press, the global cryptocurrency market is valued at at $1.69 trillion with a 24-hour volume of $55.15 billion. Bitcoin ( $110,171.00 ) dominance is currently at 49.68%. Learn more ›
