Bitcoin ETFs absorbed 9,000 BTC daily while only 450 were mined

On Tuesday, November 19th, just under 9,000 BTC was accumulated for Bitcoin spot ETFs in the United States.

That equates to about $814 million in aggregate inflows across the eleven funds, according to Coinglass.

Around 450 BTC are mined daily, which means a major supply shock is imminent if institutional funds continue to hoard coins at current rates.

Additionally, the supply shock will be amplified by the halving effect, which reduced block rewards in April. This could induce a post-halving bubble, as it has in previous cycles.

US Bitcoin ETFs Bought 9,000 Bitcoin Today (11/19)

Only 450 BTC mined today ‍♂️

— HODL15Capital (@HODL15Capital) November 20, 2024

Institutions drive BTC to ATH

More than $1 billion has flowed into spot Bitcoin ETFs in just two days this week as market momentum continues. Tuesday was a heavy inflow day for Ark 21Shares, Fidelity, and BlackRock, with the three ETFs seeing inflows of $267.3 million, $256.1 million, and $213.5 million, respectively .

There were minor inflows for the Bitwise, Grayscale and VanEck funds and no outflows for the second consecutive day of trading this week. That brings the total total inflow of the products to $28.5 billion since they launched in January.

The demand for these products reinforces the idea that this concentration is driven by institutions and retail has yet to come to the party.

#Bitcoin supply shock:

There are 1,215,672 of them #Bitcoin that remains to be exploited, this means 94.21% of the 21 million $BTC are in circulation. And the first institutions have just woken up.

Are you ready for what’s next? pic.twitter.com/qDoNUXbAu3

— Carl ₿ MENGER ⚡️ (@CarlBMenger) November 19, 2024

Bitcoin hit an all-time high of just over $94,000 during late trading on Tuesday, but retreated to $92,320 during the Asian trading session on Wednesday morning.

Launch of IBIT options

The BlackRock iShares Bitcoin Trust (IBIT) options launch on Tuesday was also bullish, with nearly $2 billion in notional exposure traded on the first day.

Analysts and experts have attributed this to the recent BTC price spike. “These options were almost certainly part of the move to new all-time highs in Bitcoin today,” Bloomberg ETF analyst James Seyffart commented.

Meanwhile, ETF Store President Nate Geraci added:

“Options add a whole new dimension. It makes it much easier and more attractive for institutional investors to enter the arena.”

I was told no need for btc spot ETFs…

Almost *$2 billion* theoretical on first day of IBIT *options* trading.

Tomorrow you will find the list of additional btc options.

Options add a whole new dimension.

It makes it much easier and attractive for institutional investors to enter the arena. https://t.co/jQpzmM7QEa

— Nate Geraci (@NateGeraci) November 20, 2024

Until now, local Bitcoin ETF options were only available outside the United States. Its launch opens up the asset to the world’s largest pool of liquidity, which could boost BTC prices if funds continue to buy it to keep up with demand.

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