Bitcoin ETFs Demand 10X More Than Miners Produce

On Monday, February 12, spot Bitcoin exchange-traded funds (ETFs) attracted investments equivalent to ten times the amount of Bitcoin produced by miners on that day.

Preliminary data indicates that spot Bitcoin ETFs received an influx of approximately $493.4 million, which translates to about 10,280 Bitcoin. The bulk of this investment was captured by BlackRock’s iShares Bitcoin Trust, which alone accounted for $374.7 million. Fidelity’s Wise Origin Bitcoin Fund saw significant inflows as well, totaling $151.9 million, followed by the Ark 21Shares Bitcoin ETF with $40 million. These substantial inflows were partially balanced by outflows from Grayscale and the Invesco Galaxy ETF, amounting to $95 million and $20.8 million, respectively. Nevertheless, the net inflows for the day approached the half-billion-dollar mark.

Contrastingly, Bitcoin mining activities on the same day yielded approximately 1,059 BTC, valued at around $51 million, based on data from Blockchain.com. This figure represents merely 10% of the Bitcoin volume absorbed by spot ETFs.

A similar pattern emerged on February 9, with ETFs collectively drawing in about 12,700 BTC or $541.5 million, overshadowing the 980 BTC (valued at roughly $45 million) produced through mining. BlackRock led with inflows of $250.7 million, with Fidelity following at $188.4 million. Ark 21Shares also experienced significant inflows, totaling $136.5 million, even as Grayscale saw its lowest weekly outflows at $51.8 million, culminating in a remarkable day of net inflows.

Commenting on the trend, Bitcoin advocate Anthony Pompliano highlighted the strong demand for Bitcoin among Wall Street investors during a CNBC’s Squawk Box interview on February 12, stating, “There is 12.5x more demand for Bitcoin than what is being produced on a daily basis.”