Bitcoin Rally: How Much ETF Demand is Actually There?
Over 35,000 bitcoins.
That’s the average weekly demand from new exchange-traded bitcoin funds over the past month, according to Swiss private bank Julius Baer—far outstripping the 6,300 or so tokens that are mined every seven days.
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Bitcoin Rally: How Much ETF Demand is Actually There?
Over 35,000 bitcoins. That's the average weekly demand from new exchange-traded bitcoin funds over the past month, according to Swiss private bank Julius Baer#btc #ETFs pic.twitter.com/KcuR7fMbAz
— The_Journalbiz (@the_journalbiz) March 15, 2024
Weekly ETF demand chart
This may explain the run-up in Bitcoin, which hit a new intraday record high Wednesday above $73,000, to retreat to 69.000 today
Bitcoin’s weekly issuance “is utterly dwarfed when contrasted against the ETFs’ token demand,” said Julius Baer analyst Manuel Villegas.
On average $440 million has flowed into the ETFs each day the past week, the bank says.
BlackRock’s iShares Bitcoin Trust, the largest of the new ETFs with $15 billion in assets under management, had $560 million in net flows Tuesday.
The bitcoin mining rate is expected to drop further next month after a periodic event called the halving, which will intensify the supply squeeze.
