Spot Bitcoin Exchange-Traded Funds Attract $91.3 Million in Inflows
Investors have continued to show interest in spot Bitcoin exchange-traded funds (ETFs), as total inflows reached $91.3 million on April 11. The leading fund attracting these inflows is BlackRock’s iShares Bitcoin Trust (IBIT), with net inflows surpassing $15 billion. Other ETFs, like Valkyrie’s Bitcoin Strategy ETF (BRRR), have also seen positive inflows in recent days.
BlackRock’s iShares Bitcoin Trust (IBIT)
- Recorded $192.1 million inflow on April 11
- Has average daily inflows of $240.4 million
- Total net inflows exceed $15 billion
Valkyrie’s Bitcoin Strategy ETF (BRRR)
- Received $8.4 million on Thursday
- Largest daily inflow since March 26
- Total net inflows reach $467.5 million
Grayscale’s GBTC Outflows
- Experienced a net outflow of $124.9 million
- Total net outflows stand at $16.1 billion
- Still holds 314,151 BTC
Despite the outflows from Grayscale’s GBTC, the overall trend in inflows into spot Bitcoin ETFs remains positive. These inflows coincide with a growing demand for Bitcoin as its supply on exchanges reaches record lows, potentially leading to a supply shock.
Demand for Bitcoin Growing Amidst Decreasing Exchange Supply
The demand for Bitcoin is surging while the supply on cryptocurrency exchanges is dwindling, setting the stage for a potential supply shock. The data indicates that demand for Bitcoin from long-term holders is outpacing issuance for the first time, highlighting a fundamental shift in the market dynamics.
CryptoQuant’s Insights
- Demand for BTC surpasses supply
- Exchange reserves hold only 9.8% of total supply
- Steady decline in exchange reserves since July 2021
With known exchange addresses holding a small fraction of Bitcoin’s circulating supply and a continuous decline in exchange reserves, investors are adopting a long-term holding strategy. This shift could lead to a supply shock if demand suddenly spikes, causing prices to rise.
Hot Take: Potential Supply Shock Looms Amidst Rising Bitcoin Demand
As Bitcoin exchange-traded funds continue to attract significant inflows and the demand for Bitcoin outstrips its supply on exchanges, the market is signaling a potential supply shock. Investors holding onto Bitcoin for the long term could significantly impact the market dynamics, leading to price appreciation as scarcity increases.
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