- The Spot Bitcoin ETFs recorded an inflow of over 15,000 BTC over the past week, which scooped up more than a month’s worth of new BTC mined and could lead to a supply shock if the robust flows continue.
- Michael Saylor spotlighted the robust flows as the global ETF reserve neared 1 Nakamoto.
- This week’s inflows bought Bitcoin worth more than new BTC mined over a month.
Spot Bitcoin ETFs see unprecedented inflows, potentially leading to a supply shock in the market.
Spot Bitcoin ETF Weekly Inflows
The week started strong with U.S. Spot Bitcoin ETFs registering inflows of over $241 million on Monday, May 20. Grayscale’s ETF GBTC saw an influx of $9.35 million despite the resignation of CEO Michael Sonnenshein, marking the fifth consecutive day of net inflows for GBTC. ARKB, managed by Ark Invest and 21Shares, attracted $68.28 million, while BlackRock’s IBIT saw inflows of $66.35 million.
On Tuesday, the momentum continued with Spot Bitcoin ETF flows totaling $305.7 million. Furthermore, BlackRock’s iShares Bitcoin Trust (IBIT) led the surge, recording an impressive $290 million in inflows, per Farside UK data. Fidelity’s FBTC also contributed significantly with $25.8 million. However, Grayscale’s GBTC saw no inflows on this day. Conversely, the Bitwise Bitcoin ETF (BITB) and VanEck’s HODL experienced outflows of $4.2 million and $5.9 million, respectively.
Bitcoin ETFs maintained their positive trajectory with net inflows of $154 million on Wednesday, extending the streak to eight consecutive days. Moreover, BlackRock’s IBIT continued to attract significant investment with $91.95 million in inflows. Fidelity’s FBTC also performed well, registering $74.57 million in inflows. However, Grayscale’s GBTC faced an outflow of $16.09 million.
In addition, the market’s demand for Bitcoin ETFs remained robust with a net inflow of $107 million on Thursday, marking nine consecutive days of positive inflows. BlackRock’s IBIT led again with $89 million in inflows. Fidelity’s FBTC reported $19.12 million, while VanEck’s HODL accounted for $9 million. Both Ark 21Shares’ ARKB and Invesco Galaxy’s BTCO recorded net inflows of $2 million each. Grayscale’s GBTC, however, saw an outflow of $13.72 million.
The week concluded with a total net inflow of $252 million on Friday, May 24, extending the inflow streak to ten consecutive days. In addition, BlackRock’s IBIT recorded a strong inflow $182 million. Fidelity’s FBTC also saw a significant inflow of $43.7083 million. Grayscale’s GBTC had a neutral day with neither inflows nor outflows.
Michael Saylor Lauds Robust Inflows
Moreover, BlackRock has continued to dominate the Bitcoin ETF market, steadily closing the gap with Grayscale. As of now, BlackRock’s IBIT holds 284,526 Bitcoins worth $19.32 billion, while Grayscale’s GBTC holds 289,257 Bitcoins valued at $19.64 billion.
Furthermore, MicroStrategy CEO Michael Saylor has commended the robust performance of these ETFs. Moreover, he also lauded the global BTC ETF market. In a post on X, he wrote, “Bitcoin held by 28 Spot ETFs is approaching 1 Nakamoto.” Hence, we could soon witness 1 million BTC locked into these investment products.
According to the latest update, the U.S. Bitcoin ETFs hold a massive reserve of 855,702 BTC. Whereas, the global ETFs hold a stash of 991,336 BTC, which suggests that within the next week, the stack could surge past 1 million BTC.
Moreover, it could be very bullish for the Bitcoin price. These ETFs bought 15,421 BTC this week, which is much higher than 13,500 BTC mined in a month. This could lead to a supply crunch as the Bitcoin exchange reserve is also diminishing due to significant whale accumulation.
Conclusion
The recent inflows into Spot Bitcoin ETFs highlight a growing investor appetite for Bitcoin, potentially leading to a supply shock if the trend continues. With significant players like BlackRock and Grayscale at the forefront, the market is witnessing unprecedented activity. As Michael Saylor pointed out, the accumulation of BTC in ETFs could soon reach 1 million, signaling strong institutional confidence in Bitcoin’s future. Investors should stay vigilant as these developments could have substantial implications for Bitcoin’s market dynamics.
