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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—far outstripping the 6,300 or so tokens that are mined every seven days.

Tweet on BTC  ETFs demand vs supply

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.


Image: BTC