News - Bitcoin price weakens despite record ETF inflows

By Mike Hesp

Bitcoin price weakens despite record ETF inflows

Bitcoin (BTC)

Bitcoin ETFs now have nearly 5 percent of the total amount in circulation. However, the price of the cryptocurrency is taking a long time to recover. What's behind it.

The spotlight Bitcoin ETFs in the US recorded inflows totaling $1.83 billion last week. This is according to data from HODL15Capital.

This was the strongest buying week for Bitcoin ETFs since March of this year. In the June 3-7 trading week alone, ETFs took in almost more than in the entire previous month.

In addition, the amount of BTC purchased corresponds to two months of production. The ETFs acquired about 25,729 BTC, compared with 3,150 BTC that miners were able to mine.

All 34 global ETFs now have more than a million BTC - about five percent of the total amount in circulation. The leader is BlackRock's IBIT ETF with more than 300,000 BTC.

According to ETF expert Nate Geraci Bitcoin ETFs already account for 60 percent of the assets under management (AUM) of gold ETFs launched 20 years ago.

Despite the record-breaking numbers, the BTC price fell at the beginning of the weekend and slipped below the $70,000 mark. There are many reasons.

There are several reasons for this. On the one hand, initially strong-looking labor market data in the U.S. had further dampened hopes of an interest rate turn. The persistently high interest rate environment inhibits risky assets, such as Bitcoin and other altcoins.

On the other hand, according to data of the futures exchange CME built up huge short positions on BTC. Thus, the sum of positions betting against Bitcoin is at a new high, which could put pressure on the price.

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