Currently, institutional Bitcoin consumption is more than 10 times its Bitcoin production.
Data shows that daily Bitcoin investments through Bitcoin spot ETF products are currently 10 times the actual Bitcoin production by miners over the same period.
A month ago, the U.S. Securities and Exchange Commission (SEC) approved 11 Bitcoin spot ETF products. And currently, 9 out of 11 Bitcoin ETFs are ranked high. Within the first week after approval, the Bitcoin ETF market overtook the silver ETF market. Some experts believe that Bitcoin could surpass the Gold ETF market cap within the next 10 years, but some Gold maximalists oppose this analysis.
According to available data reports, between February 12, 2024, there were net 10,280 BTC investment inflows worth $493.4 million.
Top fund manager BlackRock’s IBIT took the lion’s share with a whopping $374.7 million inflows. Fidelity’s FBTC fund received $151.9 million in inflows, while Ark 21 Shares’ ARKB fund received $40 million. However, in the case of Grayscale, this was slightly offset by outflows of $95 million and $20.8 million from Invesco’s BTCO. Simply put, there were nearly $500 million in net inflows into the Bitcoin market.
According to Blockchain.com, during the same period, Bitcoin miners produced 1,059 BTC, worth $51 million at current Bitcoin trading prices. This means that the input supply of new Bitcoin in the market is only 10% of the actual demand from investors through ETF products.
A similar situation occurred in the Bitcoin market on February 9th. At the time, Bitcoin ETF investors had accumulated 12,700 BTC, but Bitcoin production on the same day was only 980 BTC.
Popular cryptocurrency influencer Anthony Pompliano noted this surging demand for Bitcoin, saying in an interview with CNBC that net demand is currently 12.5 times Bitcoin production.
The current trading price of Bitcoin (BTC) is $50,000, which is 40% higher than the last three months.
Also Read: Legendary Financial Market Analyst Says Bitcoin Will Reach $10 Million in Next 20 Years