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Bitcoin price is rising as spot ETFs accumulate 10 times more BTC than miners' production

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February 13, 2024 2:07 am EST | 2 minutes read

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

These ETFs have managed to accumulate an incredible ten times as much Bitcoin (BTC) than what the miners were able to produce on Monday.

More accurate, show data that about $493.4 million, equivalent to about 10,280 BTC, had flowed into spot Bitcoin ETFs as of February 12th.

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

Fidelity's FBTC fund followed close behind with a sizeable 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 almost half a billion dollars.

In contrast, Bitcoin miners only produced around 1,059 BTC on the same day, equivalent to around $51 million Data from Blockchain.com.

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

A similar trend was seen on February 9, with spot ETFs taking in around 12,700 BTC worth a whopping $541.5 million, while mining contributed just 980 BTC worth around $45 million.

BlackRock and Fidelity dominate ETF inflows

BlackRock has taken the lead in inflows with an inflow of $250.7 million on February 9th.

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

Grayscale outflows fell to their lowest level of the week at $51.8 million, leading to record days of total inflows.

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

He emphasized that the demand for Bitcoin is 12.5 times greater than the daily production.

Wall Street LOVES Bitcoin.

They buy 12.5 times more Bitcoin per day than the network can produce.

If this continues, the march to a new all-time high is underway.

I explain this in my post with @SquawkCNBC this morning. pic.twitter.com/0zRc3RQ4hY

– Pomp 🌪 (@APompliano) February 12, 2024

Pompliano noted that about 80% of the total Bitcoin supply has stagnated over the past six months, with only about $200 billion worth of BTC actively tradable.

Spot ETFs managed to accumulate 5% of the total tradable supply of Bitcoin in just 30 days, demonstrating the huge demand for the cryptocurrency.

Spot BTC ETFs are seeing increased trading volume

Last week, spot Bitcoin ETFs recorded their entire daily trading volume Exceed $1 billionwith BlackRock emerging as the top performer.

Additionally, 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 spot with estimated net inflows of $2.6 billion, while FBTC took the tenth spot with net inflows of $2.2 billion.

In contrast, the Grayscale Bitcoin Trust (GBTC) saw significant outflows: an estimated $5.7 billion left the fund in January, marking the second-highest outflow among ETFs.

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

Currently, the Bitcoin price is hovering around the $50,000 mark, up more than 4% compared to the last day.

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