In a significant development, spot Bitcoin exchange-traded funds (ETFs) in the United States acquired the equivalent of around two months’ worth of the cryptocurrency’s mining supply in the first week of June. The 11 ETFs saw inflows of approximately $1.83 billion, resulting in the acquisition of 25,729 Bitcoin (BTC) worth $68,164.
This massive buying spree is significant, as it represents around eight times more than the 3,150 new BTC mined over the same period, according to data from HODL15Capital. The amount of Bitcoin acquired in the week alone was almost as much as the entire of May, with 29,592 BTC mined, per HODL15Capital’s count.
The weekly BTC buys of U.S. Bitcoin ETFs since their January launch have been steadily increasing, with the latest week being the biggest since mid-March when Bitcoin hit its current all-time high of $73,679. The 11 ETFs have seen $15.69 billion in net inflows since their January launch, including the $17.93 billion in net outflows from Grayscale’s fund, with total assets under management (AUM) of around $61 billion.
The surge in ETF inflows has led to a significant increase in Bitcoin’s price, with the asset touching a high of $71,093 on June 5, the first time it has been above $71,000 since May 21, according to Cointelegraph Markets Pro.
Bitcoin proponents have long touted cryptocurrency as “digital gold” due to its built-in scarcity mechanism, which sees only 21 million BTC ever being issued. The comparison to gold ETFs is also notable, with Bitcoin ETF AUM being around 60% that of the country’s gold ETFs, despite gold ETFs being around for 20 years and Bitcoin ETFs for only five months.
As the popularity of Bitcoin ETFs continues to grow, it will be interesting to see how this trend develops and whether it has a lasting impact on the cryptocurrency’s price.
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Source: Cointelegraph
