US Bitcoin ETFs acquired 17,941 BTC in September 2024, exceeding the 13,500 BTC produced by miners.
BlackRock’s iShares Bitcoin ETF (IBIT) grew from 228 BTC in January to 366,451 BTC by September 2024, with $23.8 billion in assets under management.
Grayscale’s Bitcoin ETF (GBTC) holdings dropped from 619,162 BTC in January to 221,191 BTC by September 2024, reducing its AUM to $14.4 billion.
In September 2024, US Bitcoin ETFs accumulated more Bitcoin than miners could supply. According to data from HODL15Capital, ETFs collectively acquired 17,941 BTC during the month.
In contrast, miners were able to produce only 13,500 BTC in the same period. This difference in supply and demand highlights a growing interest in Bitcoin ETFs as a preferred method for gaining exposure to the asset.
https://twitter.com/HODL15Capital/status/1841089964701888840 Increased ETF Demand Signals Shifts in Bitcoin Market
Notably, Bitcoin ETFs now play a critical role in the overall market dynamics. These funds absorbed all the newly mined Bitcoin in September, exceeding the available supply. This surge in demand could lead to increased pressure on the Bitcoin market as availability becomes constrained.
Furthermore, as of the end of September 2024, US Bitcoin ETFs collectively held 931,650 BTC, which is equivalent to over $60.5 billion in assets under management. Investors are increasingly gravitating toward these funds as they offer a way to invest in Bitcoin without needing to hold the digital asset directly.
Moreover, BlackRock’s iShares Bitcoin ETF (IBIT) has emerged as a market leader. Its holdings skyrocketed from just 228 BTC in January to an impressive 366,451 BTC by the end of September, representing a staggering $23.8 billion in assets under management. This rapid growth demonstrates the increasing institutional demand for Bitcoin ETFs.
Fidelity and Grayscale ETFs See Diverging Results
Additionally, Fidelity’s WiseOrigin Bitcoin ETF (FBTC) also reported significant growth during the same period. By the end of September, it held 180,345 BTC, bringing its assets under management to $11.7 billion. This uptick in holdings further emphasizes the trend of institutional investors turning to ETFs to gain Bitcoin exposure.
Conversely, Grayscale’s Bitcoin ETF (GBTC) saw a notable decline in its holdings. At the beginning of 2024, GBTC held 619,162 BTC. However, by the end of September, its holdings had dropped to 221,191 BTC, lowering its assets under management to $14.4 billion. This decline suggests that some investors are shifting to newer ETFs, possibly seeking better liquidity or more favorable fees.
Potential Impact on Bitcoin’s Future Availability
Besides, the increased demand from ETFs could have lasting effects on Bitcoin’s availability. As these funds continue to absorb a significant portion of newly mined Bitcoin, supply may become constrained.
Therefore, this growing imbalance could put upward pressure on the cryptocurrency’s price in the near future. Additionally, with institutional investors continuing to prefer ETFs, Bitcoin’s long-term market dynamics could see further shifts in response to these trends.
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