BlackRock gained 11,500 BTC during the decline as the ETF leads the pack

BlackRock reportedly bought a staggering sum 11,500 Bitcoin is out of available supply during the recent decline since the launch of the Spot Bitcoin ETF.

This is a large amount, considering that only 900 BTC are issued daily. BlackRock’s purchase actually represents about 13 days of Bitcoin production absorbed by a single player.

Larry Fink, CEO of the asset management company, recently said that his views on Bitcoin have evolved significantly over the years, and he now sees it as a “viable asset class.”

Supply crisis

Based on the data, the iShares Bitcoin Trust (IBIT) Spot ETF only managed about 25% of trading volume during the same two-day period. From this, one can deduce that approximately 46,000 Bitcoins have been removed from the system over the past two days, with influences from other players such as Grayscale Bitcoin Trust (GBTC).

If this trend continues, the Bitcoin market could face a severe supply crunch. With an estimated 46,000 BTC absorbed in two days, equivalent to 23,000 BTC per day, this rate equates to about 25.5 times the daily production of Bitcoin.

The high demand by US ETFs, not to mention additional demand from retail investors and other global ETFs, indicates a tightening of the available supply of Bitcoin.

Despite the fluctuations in Bitcoin prices, the underlying asset remains resilient. Despite the high fees associated with GBTC, the successful launch of a Bitcoin ETF is a strong indicator of growing institutional interest. It could herald a new era of scarcity in the Bitcoin market.

ETF inflows amounted to $819 million

The first two trading sessions after the approval of Bitcoin exchange-traded funds (ETFs) saw significant inflows A total of $1.4 billion. After accounting for GBTC outflows, the total net inflows across all Bitcoin-related products were $819 million.

A breakdown of this activity shows a notable volume of 500,000 individual trades, contributing to a total trading volume of $3.6 billion. BlackRock’s iShares Bitcoin Trust (IBIT) led the pack in this initial raise, garnering total inflows of $497.7 million.

The Fidelity Advantage Bitcoin ETF (FBTC) was lagging behind, raising $422.3 million. Bitwise (BITB) also made a big impact, attracting $237.90 million in investments.

In contrast, Grayscale Bitcoin Trust (GBTC), a pre-existing product, saw an outflow of $579 million during the same period. This shift is partly due to investors opting for new Bitcoin ETFs that offer lower fees.

This trend is in line with previous forecasts of ETF analysts, who predicted that Bitcoin ETFs could attract around $10 billion in their first year of operation. It is worth noting that GBTC is one of the largest holders of Bitcoin, with over $27 billion under management.