Bitcoin ETFs Are Set for Increased Activity
20 May, 2024 ● Coin news
Tedtalksmacro discussed the potential for a robust recovery in the U.S. spot Bitcoin exchange-traded funds (ETFs).
These ETFs have faced challenges maintaining investor interest since Bitcoin's peak prices in March.
However, there's been a notable turnaround; last week, the products attracted nearly $1 billion in inflows, marking their strongest performance since March.
"Expect these to only increase as price drifts higher and tradFi once again renew faith in the asset," Tedtalksmacro summarized.
The dynamics of ETF demand are evolving.
With the Bitcoin block subsidy now half what it was in March, the substantial inflows into these ETFs compel providers to acquire significantly more BTC than what is produced by miners each day.
"Bitcoin ETFs have purchased 21,700 BTC ($1.5B) in the month to date," Thomas Fahrer, CEO of the crypto reviews portal Apollo, disclosed last week.
"This is 3X the supply of new bitcoin from miners."
Currently, the U.S. spot ETFs collectively control about 2.8% of the total BTC supply.
Sources:
https://cointelegraph.com/news/etfs-buy-3x-new-btc-supply-5-things-bitcoin-this-week
