US Spot Bitcoin ETFs Demand Surges Past Bitcoin Mining Rate

• US spot Bitcoin ETFs amassed a little under 9000 bitcoins on November 19th.
• Assuming institutional investors maintain their present pace, a massive supply shock is likely.

US spot Bitcoin exchange-traded funds still buy more bitcoins per day than are being produced. According to Coinglass, the total aggregate inflows across all eleven ETFs amount to around $814 million. Assuming institutional investors maintain their present pace of coin hoarding, a massive supply shock is likely, given that around 450 BTC are mined everyday. US spot Bitcoin ETFs amassed a little under 9000 bitcoins on November 19th.

In addition, the halving effect, which decreased block rewards in April, will amplify the supply shock. A post-halving bubble, similar to those in earlier cycles, might be produced.

Institutional Demand Surge

As the market momentum persists, spot Bitcoin ETFs have received over $1 billion in only two days this week. Ark 21Shares, Fidelity, and BlackRock all had record-breaking inflows of $267.3 million, $256.1 million, and $213.5 million on Tuesday, respectively, into their respective exchange-traded funds.

For the second day in a row, no money left the Bitwise, Grayscale, or VanEck funds, and a little amount of money came in. Since the introduction in January, the overall aggregate inflow has reached $28.5 billion.

This rally seems to be being spearheaded by institutions. As seen by the demand for these products, whereas retail investors have not yet joined in. In Tuesday’s late trading, Bitcoin reached a new all-time high of little over $94,000; but, by Wednesday morning’s Asian trading session, it had fallen to $92,320.

On Tuesday, BlackRock introduced the iShares Bitcoin Trust (IBIT) options, which were met with positive reception. The first day of trading saw over $2 billion worth of notional exposure.

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