Bitcoin ETFs: Big Players Continue to Accumulate BTC
The top four Bitcoin ETF issuers, including BlackRock’s iShares Bitcoin ETF (IBIT), Fidelity (FBTC), Ark Invest (ARKB), and Bitwise (BITB), have been actively purchasing Bitcoin in significant amounts. Data from HODL15Capital on X, a renowned cryptocurrency market insights provider, reveals that these ETFs have been consistently buying BTC since they were approved by the SEC in January.
Spot Bitcoin ETFs vs. Mining Output
The data shows that the weekly mining output of Bitcoin is around 6,300 BTC. This serves as a reference point to highlight the contrast between newly minted Bitcoins through mining and the large purchases made by institutional investors through ETFs.
In the nine weeks analyzed, the major four Bitcoin ETF products accumulated an average of 40,000 BTC. The volume of purchases only decreased in the fifth and seventh weeks, while reaching its highest level during the second week with 68,000 BTC sourced from mining activities.
On March 1, Bloomberg and BitMEX Research reported a net outflow of $140 million from Bitcoin ETFs.
Performance of the Big Four ETF Issuers
BlackRock maintained its lead by accumulating over 31,000 BTC in the past week. Fidelity Investments followed closely behind with a purchase of 19,960 BTC. Ark Invest and Bitwise bought over 5,400 BTC each.
During pre-market trading on Wednesday, the iShares Bitcoin ETF (IBIT) from BlackRock experienced a 9% surge, reaching $38.50. Similarly, Fidelity Investments’ spot Bitcoin ETF (FBTC) outperformed other funds in the market, collectively attracting 79% of the total inflow since its inception. Ark Invest and Bitwise also recorded significant BTC purchases of 2,845 and 2,561 respectively.
Bitcoin Price Action
The performance of the big four ETF issuers is reflected in the price action of Bitcoin. The cryptocurrency reached two all-time highs during the week, with the most recent surpassing $70,000. At the time of writing, Bitcoin is priced at $68,503.72, representing a 10.59% increase in the past week.
Hot Take: Institutional Demand Continues to Drive Bitcoin Accumulation
The ongoing accumulation of Bitcoin by institutional investors through ETFs highlights the increasing demand for the cryptocurrency. As major players like BlackRock, Fidelity Investments, Ark Invest, and Bitwise continue to acquire significant amounts of BTC each week, it reinforces Bitcoin’s position as a valuable asset in their portfolios.
This trend also contributes to the overall positive sentiment surrounding Bitcoin and its price growth. With more institutions recognizing its potential and actively investing in it, Bitcoin is likely to experience further appreciation in value.
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