This acquisition by BlackRock amounts to the consumption of 13 days’ worth of Bitcoin output by a single entity.
During the most recent decline after the debut of its spot Bitcoin ETF, BlackRock allegedly purchased an astounding 11,500 bitcoins out of the available supply.
Given that only 900 BTC are released per day, this sum is rather substantial. This acquisition by BlackRock amounts to the consumption of 13 days’ worth of Bitcoin output by a single entity.
“Viable asset class” in Larry Fink’s eyes, according to his latest comments, after his views on Bitcoin have changed considerably over the years. Fink is the CEO of Asset Management.
According to the numbers, the iShares Bitcoin Trust (IBIT) Spot ETF was only able to handle 25% of the trading activity within the same two-day range. It may be deduced from this that, due to external factors such as Grayscale Bitcoin Trust (GBTC), some 46,000 BTC were taken from the system over the previous two days.
The Bitcoin market may see a serious shortage of supply if this pattern persists. At a pace of 23,000 BTC per day, or 46,000 BTC in two days, this rate is almost 25.5 times the daily creation of Bitcoin.
There seems to be a scarcity of Bitcoin due to the high demand from U.S. ETFs, individual investors, and other foreign ETFs.
The price fluctuations have not affected the value of the underlying asset, Bitcoin. Even though GBTC has hefty fees, the fact that the Bitcoin ETF was able to start successfully shows that institutional interest is on the rise. It may signify the beginning of Bitcoin’s new age of extreme scarcity.
A whopping $1.4 billion poured into the Bitcoin market in the two trading sessions after new ETFs were approved. Net inflows across all Bitcoin-related goods were $819 million after GBTC outflows were taken into consideration.
An analysis of these transactions reveals an astounding number of 500,000 separate deals, amounting to $3.6 billion in total trading volume. BlackRock’s iShares Bitcoin Trust (IBIT) led the first spike in flows with a total of $497.7 million.
Nearby, at $422.3 million, was the Fidelity Advantage Bitcoin ETF (FBTC). With $237.90 million in investment, Bitwise (BITB) was also greatly affected.
On the other hand, $579 million left the pre-existing Grayscale Bitcoin Trust (GBTC) during that time. Investors’ preference for the new Bitcoin ETFs with reduced costs is a contributing factor to this change.
According to previous predictions made by ETF experts, Bitcoin ETFs have the potential to attract around $10 billion in their first year of operation. This pattern is in line with those predictions. It should be mentioned that GBTC manages about $27 billion worth of Bitcoin, making it one of the biggest holders.
Also Read: According to experts, Bitcoin is expected to reach new all-time highs
