Over the last week, there has been a significant increase in investments towards Bitcoin exchange-traded funds (ETFs). The latest data reveals that a total of $91.3 million was poured into these funds on April 11. Amongst the major contributors to this inflow was BlackRock’s iShares Bitcoin Trust (IBIT), which has now recorded net inflows amounting to over $15 billion.
Based on information provided by BitMEX Research, there was a large purchase of $192.1 million worth of spot Bitcoin from the ETF managed by the biggest asset manager on April 11, marking the largest single day investment since April 5. On average, this fund receives daily investments of approximately $240.4 million since its inception.
On Thursdays, there was a significant investment of $8.4 million in Valkyrie’s Bitcoin Strategy ETF (BRRR), representing its biggest daily intake since March 26. This addition raised the fund’s total net inflows to an impressive $467.5 million.
Flows into Bitcoin ETFs were reduced in total due to Grayscale’s GBTC experiencing a net withdrawal of $124.9 million, amounting to a grand total of $16.1 billion in outflows. Despite this, the fund continues to hold a significant amount of 314,151 Bitcoin, making it the largest Bitcoin fund even before its conversion into a spot ETF.
After seeing considerable inflows since its launch, BlackRock’s IBIT now manages approximately 269,310 Bitcoin.
Bitcoin ETF Flow – 11 April 2024
All data in. Total net inflow of $91m
— BitMEX Research (@BitMEXResearch) April 12, 2024
At present, there’s an increased appetite for Bitcoin as its popularity surges at an unprecedented rate. Simultaneously, the amount of Bitcoin kept on cryptocurrency exchanges has hit a new low. This situation might lead to a potential supply shortage, which could in turn push prices upwards.
Based on information from CryptoQuant, led by its Head of Research Julio Moreno, the need for Bitcoin has surpassed its availability for the first time. Specifically, the desire for Bitcoin among long-term investors has grown stronger than the rate at which new coins are being released into circulation.
According to CryptoQuant’s data analysis, approximately 9.8% (around 1.94 million) of the entire Bitcoin circulation is currently held by identified exchange wallets. This amount equates to a relatively small portion of the total Bitcoin supply, which is roughly 19.67 million coins.
The amount of Bitcoin held in exchange reserves has been gradually decreasing since reaching a high of 2.85 million BTC in July 2021. This reduction in available Bitcoin on exchanges indicates that investors are adopting a buy-and-hold approach, rather than frequently buying and selling.
Remarkably, a scarcity of assets on exchanges warrants consideration. If demand unexpectedly spikes, this scarcity could result in a supply shortage. A supply shortage arises when the accessible supply of an asset on exchanges suddenly plummets while demand remains high.
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2024-04-13 02:03