It was revealed that the U.S. Bitcoin spot exchange-traded fund (ETF) purchased about two months worth of Bitcoin mining volume in the first week of June.
What's New: Cryptocurrency research firm HODL15Capital reported that in the five business days from the 3rd to the 7th of last week, approximately $1.83 billion in funds flowed into 11 ETFs, resulting in a total of 25,729 Bitcoins. It was announced that it had been purchased.
This is 8 times the amount of Bitcoin mined in one week from the 3rd to the 9th, which is 3,150. As ETF buying intensifies, there is growing concern that a demand shock may occur in the market .
Background to the problem: Last week, almost as much money was inflow into the Bitcoin ETF as in May the previous month. The money that came in during the month of May came in in just one week. In particular, on the 4th (local time), approximately $886 million in funds were inflow. This is the second largest daily inflow since the launch of the Bitcoin spot ETF.
The U.S. Bitcoin spot ETF has already seen $12 billion worth of new inflows as of last March. Net inflow performance in April and May was sluggish, failing to pick up any significant pace. In this situation, the inflow in the first week of June broke the balance. As of the 10th, a total of $15.69 billion was in net inflow.
This net inflow speed is quite unusual even in the ETF industry. Nate Geraci, CEO of ETF Store , pointed out on the 9th through his
Important point: There is a special reason why industry insiders are showing interest in buying Bitcoin spot ETFs. This is because Bitcoin is an asset whose total issuance volume is fixed at 21 million. For other assets, even if there is a lot of buying pressure, the value may be diluted later because the total issuance volume increases.
On the other hand, there are considerably fewer such concerns with Bitcoin. Rather, if there is an inflow of buying power above a certain level, a demand shock may occur that causes the price of Bitcoin to soar as Bitcoin becomes scarce. This is also why Bitcoin is nicknamed ‘digital gold’.
What happens next: Hoddle 15 Capital said that the amount of Bitcoin purchased through ETFs last week was similar to the March figure when Bitcoin hit its previous high. If a similar amount of Bitcoin is purchased through ETFs this week, it is likely to reach its previous high.
On the 7th of last week, the price of Bitcoin rose to the $72,000 level, the highest level since March, but fell again to the $69,000 level in the aftermath of the employment index released by the U.S. Department of Labor. As of 6 p.m. on the 10th, the price of Bitcoin is hovering around $69,400, down 0.26% from the previous day.
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