The Bitcoin price rose above $70,000 this week for the first time in history. During that historic week for the digital currency, the Spot Bitcoin ETFs managed a net inflow of 33,614 Bitcoin, representing a value of $2.28 billion at current prices.
BlackRock was the big boss with 31,588 pieces when it comes to buying Bitcoin. Fidelity followed in second place with 19,960 units. Where will this end for Bitcoin?
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BlackRock overtakes MicroStrategy
MicroStrategy became the first publicly traded company to rebrand Bitcoin as its primary savings vehicle in August 2020. Since then, MicroStrategy has managed to withdraw 193,000 Bitcoin from the market and this week announced that it has an additional $700 million ready to purchase new Bitcoin.
However, what took MicroStrategy more than three years, BlackRock did in 40 trading days. BlackRock now has 196,089 Bitcoin on its balance sheet for its customers.
The big difference, of course, is that BlackRock manages this Bitcoin for multiple investors and that MicroStrategy managed this all on its own.
In total, the ETFs, including Grayscale’s outflows, managed to accumulate a total of 181,733 Bitcoin in the first 40 trading days. If we multiply that by the annual total number of 252 trading days, we arrive at an annual net inflow of ~1.144 million Bitcoin.
At that rate, the ETFs would generate annual capital inflows of ~$77 billion at current prices. That, especially in combination with the halving, makes it almost impossible for us to end this bull run at $70,000.
Is the halving important for Bitcoin?
The next Bitcoin halving is scheduled for April 20 and means that daily production will drop from 900 to 450 units.
At the current rate of ~$68,000, that produces a daily capital “inflow” of $30.6 million. After all, those Bitcoins will no longer come onto the market, so you could see it as an investor withdrawing that amount of Bitcoin from the market every day for the next 4 years.
On an annual basis, this results in an amount of approximately $11 billion. This is in addition to the inflow of ETFs. This means that this year’s halving could have a stronger effect on the Bitcoin price than that of 2020.
Although that of course remains speculation, because certainty does not exist in the financial markets (unfortunately). Where do you think the Bitcoin price will end during this bull run?
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Source: https://newsbit.nl/bitcoin-etfs-kopen-in-een-week-voor-228-miljard-aan-btc/
