BitcoinMining Supply Ratio Outpaced by RecordBreaking Purchases

Mining Supply Ratio Outpaced by RecordBreaking Purchases

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During the first week of June, Bitcoin exchange-traded funds (ETFs) in the US made an impressive move by purchasing a significant amount of Bitcoin. According to data from HODL15Capital, a total of 25,729 Bitcoin was acquired by 11 ETFs, totaling almost $1.83 billion in inflows. This amount was eight times more than the 3,150 new Bitcoin mined during the same period, marking a record-breaking week of purchases since Bitcoin’s peak of $73,679 in March.

The total assets under management (AUM) for these 11 ETFs have now reached approximately $61 billion, with a remarkable $15.69 billion in net inflows since their launch in January. Notably, this figure does not include the $17.93 billion in net withdrawals from Grayscale’s fund.

Bitcoin’s scarcity mechanism, which limits the total supply to 21 million BTC, has earned it the nickname of “digital gold” among its proponents. Despite the fact that gold ETFs have been around for two decades compared to just five months for Bitcoin ETFs, the AUM of Bitcoin ETFs in the US now stands at about 60% of gold ETFs, as pointed out by ETF Store president Nate Geraci.

As Bitcoin continues to attract investment through ETFs in the US, the cryptocurrency’s price surged to $71,093 on June 5, the highest it had been since May 21. The price of Bitcoin is heavily influenced by macroeconomic factors and geopolitical events, making it challenging to surpass its current peak.

In other crypto news today, despite a weekend slump, some cryptocurrencies experienced significant gains.

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