Spot BTC ETFs Witness Surged Demand
Spot BTC ETFs have witnessed surged demand leading to purchase of 6x more BTC as produced in the last week.
BlackRock Leads the Market
BlackRock iShares Bitcoin Trust (IBIT) is leading the market with a record inflow of $2.5 billion in the last five days. The US Spot Bitcoin exchange-traded funds (ETFs) have recently purchased around six times of Bitcoin produced in the past week. The Spot Bitcoin ETFs purchased around 18,644 BTC in the last week, when just 3,150 BTC were mined for that duration, as reported by HODL15 Capital.
The miners are allowed to generate only 450 coins per day, and now the purchase by institutions and ETF issuers signals around six times the amount of BTC produced. An investment management boutique, Farside Investors, reported that the overall inflow for the last five trading days stood at $1.8 billion.
On the other hand, only one net outflow was recorded after April 16, which was on April 30, because the inflows have signaled a strong market recovery. The purchase resulted in a skyrocketing price of BTC at the beginning of May.
On May 2, the asset witnessed a six-week high, with a trading price of $97,700 and a surge of 4%. Since then, it dropped to $94,000, and at the time of writing, the price of the asset hovered at $94,660.
BlackRock iShares Bitcoin Trust (IBIT)
BlackRock iShares Bitcoin Trust (IBIT) is leading the market with a record inflow of $2.5 billion in the last five days and a streak of 17 days of recording no outflow. Nate Geraci, ETF store President posted a blog on May 3 mentioning that Spot Bitcoin ETFs have skyrocketed into the $110 billion category, regardless of going through significant distribution issues.
He further went on to add that the majority of wealth management platform still limits financial advisors and brokers from advising or giving access to Bitcoin ETPs. “This is why I have asserted that spot Bitcoin ETFs are functioning with single hand tied behind their backs. Just imagine what might happen as these limitations are taken off.”
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