Bitcoin ETFs Snap Up Two Months’ Worth of Mining Supply in One Week

US Spot Bitcoin ETFs Acquire 25,729 BTC in Early June, Attracting $1.83 Billion in New Investments.

Key Takeaways:

  • US spot Bitcoin ETFs acquired 25,729 BTC (two months' supply) in June's first week.
  • $1.83 billion was poured into 11 ETFs from June 3-7.
  • Since January, 11 Bitcoin ETFs have accumulated $15.69 billion in net inflows.

According to a screenshot from HODL15Capital, Bitcoin ETFs in the United States acquired the equivalent of two months' worth of the cryptocurrency's mining supply in the first week of June. 

Between June 3-7, 2024, US Bitcoin ETFs bought 25,729 BTC, eight times more than the 3,150 BTC mined in the same period. This amounted to $1.83 billion in inflows for the period.

Since their approval in January 2024, Bitcoin ETFs have gained $15.69 billion in net inflows, showing strong institutional demand. 

They now manage around $61 billion in assets. According to Bloomberg Intelligence data, Bitcoin ETF inflows now comprise 26% and 56% of year-to-date inflows for BlackRock and Fidelity, respectively.

Related: Fidelity Exec Backs Bitcoin Allocation for Diversified Portfolios.

Notably, this week's Bitcoin purchases almost matched the total for May, which saw 29,592 BTC bought. This is also the biggest week of acquisition from Bitcoin ETFs since mid-March when BTC hit its all-time high of $73,679.

On the other hand, Bitcoin mining companies like Marathon Digital and Core Scientific saw a significant drop in production. Marathon Digital's BTC output fell 27% from 850 to 616 BTC, while Core Scientific's output dropped 44% from 803 to 447 BTC.

The Bitcoin Halving event in April 2024 caused this production drop by reducing Bitcoin production.

How Does This Impact the Bitcoin Market?

The continuous inflow of investments into Bitcoin ETFs positively influences the market by driving up demand, which can lead to price increases as the total supply is fixed. 

This heightened demand from institutional investors supports price growth and adds a layer of market stability and credibility, potentially attracting more retail investors.

Notably, the weekly inflows of approximately $1.83 billion show strong investor confidence and interest in Bitcoin. Nate Geraci, who runs the investment advisory firm ETF Store, reinforced this confidence. Geraci revealed that Bitcoin ETFs had amassed 60% of the AUM of Gold ETFs in just five months. 

Gold ETFs, launched nearly 20 years ago, have $105 billion in AUM, while Bitcoin ETFs have achieved $61 billion in AUM. 

This statistic highlights the red-hot growth and acceptance of Bitcoin ETFs in a much shorter time frame. It also indicates BTC's potential to become a dominant investment vehicle.

Understanding Bitcoin ETFs and Bitcoin Mining

A Bitcoin ETF is a financial product that tracks Bitcoin's spot price and trades on traditional stock exchanges. It allows investors to gain exposure to Bitcoin without directly owning the asset.

These products offer a more regulated and accessible way to invest in BTC than through a cryptocurrency exchange.

Bitcoin mining supply is the number of new Bitcoins generated through the mining process. Miners use computational power to solve complex mathematical problems and validate transactions on the Bitcoin network, a core concept of Bitcoin's monetary policy.