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News - Are Bitcoin ETFs causing a demand shock?
The demand for Bitcoin ETFs continue to gain traction. Asset managers are now buying more BTC than miners can produce.
Demand for Bitcoin ETF's remains high. On Monday, financial products established a new record when trading volume rose to more than $2.4 billion in a single day.
BlackRock's ETF alone accounted for 1.3 billion. IBIT also traded above this limit yesterday.
As Bitcoin Magazine reported on X (formerly Twitter), more than 9,000 BTC were traded yesterday. The crypto medium compared the figure to the amount of BTC produced daily.
JUST IN: 🇺🇸 Spot #Bitcoin ETFs bought over 9,000 #BTC yesterday, while miners only produced ~900 BTC 👀 pic.twitter.com/NypBmoodF9
— Bitcoin Magazine (@BitcoinMagazine) February 27, 2024
The result: miners produced 10 times less Bitcoin yesterday than the ETFs were asking for, about 900 units.
If the trend continues, the scenario of a demand shock is quite realistic (also in view of the upcoming halving).
The trend is already noticeable in Bitcoin. The cryptocurrency reached a new annual high a few minutes ago. At the time of writing, BTC stands at $58,484. This level was last reached in December 2021.
Meanwhile, opinions on ETFs are not all positive. Some see the admission as a "huge mistake."
