₿ Bitcoin ETF absorbs 9,000 BTC in a day, exceeding daily production of miners, is a supply shock imminent?
Since the Bitcoin ETFs started trading in the United States, they have been absorbing a large amount of Bitcoin. On November 19 alone, they absorbed up to 9,000 coins, compared to only 450 new Bitcoins mined by miners that day!
Currently, these 11 Bitcoin ETF funds have collectively attracted $814 million in inflows, which indeed shows the market's tremendous enthusiasm and positive response to these ETF funds.
If these funds continue to buy like this, a supply shock is just a matter of time. Additionally, the halving event in April, which cuts the reward for mining new blocks in half, could also catalyze a new round of market bubble.
However, the current market enthusiasm shows no signs of waning. In just two days this week, over $1 billion has flowed into spot Bitcoin ETFs. Notably, Ark 21Shares, Fidelity, and BlackRock saw inflows of $267.3 million, $256.1 million, and $213.5 million respectively on Tuesday.
Moreover, Bitwise, Grayscale, and VanEck funds also experienced some inflows this week. Since their launch in January, the total inflow for these ETF products has reached $28.5 billion. This indicates that the rebound is driven by institutions, while retail investors have not yet entered the market on a large scale.
Meanwhile, BlackRock's iShares Bitcoin Trust (IBIT) options also began trading on Tuesday, with nearly $2 billion in trading volume on the first day. Analysts say this phenomenon seems to be one of the key factors driving Bitcoin prices to new highs.
Nate Geraci, president of ETF Store, commented: "Options provide institutional investors with a new dimension, making it easier and more attractive to enter this field."
Currently, spot Bitcoin ETF options are only available outside the United States. This could give Bitcoin the largest liquidity support globally, and with continued inflows, it is expected to further push up Bitcoin prices.
Bitcoin prices reached a historic high of just over $94,000 yesterday, and although it has now retreated to around $93,000, the upward momentum remains strong!
What do you think? Does this wave of Bitcoin ETFs and options herald a new era for cryptocurrencies? Share your thoughts in the comments!
