In a remarkable demonstration of institutional appetite for Bitcoin (BTC), U.S.-based spot Bitcoin exchange-traded funds (ETFs) accumulated nearly six times the amount of Bitcoin produced by miners over just one week. According to asset allocation firm HODL15Capital, these funds acquired a staggering 18,644 BTC, while miners only generated 3,150 BTC during the same timeframe.
This phenomenon underscores a growing trend where institutional investors and ETF issuers significantly influence Bitcoin’s market dynamics, as the miners typically produce around 450 coins daily. Over the past five trading days, this accumulation has resulted in approximately $1.8 billion in inflows, reflecting a net outflow only observed on April 30. This inflow surge appears to correlate with Bitcoin’s recent recovery in price.
On May 2, Bitcoin experienced a notable uptrend, increasing by 4% and reaching a six-week high of $97,700. However, the asset has since retraced to around the $94,000 level, mirroring its price from a week ago.
Leading the charge in this ETF market is BlackRock’s iShares Bitcoin Trust (IBIT), which has attracted nearly $2.5 billion in inflows over the last five trading days. Remarkably, IBIT has maintained a streak of 17 consecutive days without any outflows.
Nate Geraci, president of the ETF Store, noted that despite challenges in distribution channels, the spot Bitcoin ETF sector continues to flourish, valued at nearly $110 billion. He also highlighted the restrictions many wealth management platforms impose on financial advisers and brokers concerning access to Bitcoin exchange-traded products (ETPs), likening it to operating with “one hand tied behind their backs.” Geraci believes that the removal of such restrictions could dramatically amplify ETF growth.
Anticipated Litecoin ETF Decision
In other developments, the U.S. Securities and Exchange Commission (SEC) is due to issue a second deadline decision on the Canary Capital spot Litecoin (LTC) ETF filing by May 5. James Seyffart, a Bloomberg ETF analyst, suggested that if any asset could gain approval, it might be Litecoin, although he expressed skepticism about the likelihood of a prompt decision.
With over 70 crypto ETFs awaiting SEC decisions this year, analysts are closely monitoring the evolving landscape of cryptocurrency investment vehicles. The potential for increased institutional participation in the crypto market could change the dynamics of asset accumulation and price performance going forward.
Related: BlackRock Bitcoin ETF buys $970M in BTC as inflows surge, boost market
