Bitcoin ETFs Seize 5% of Total BTC Supply in Record Time

BTC ETF

In a notable discussion on CNBC’s Squawk Box, venture capitalist, prominent Bitcoin advocate, and entrepreneur Anthony Pompliano shared his insights on the recent and remarkable journey of Bitcoin and its spot Exchange-Traded Funds (ETFs). These spot Bitcoin ETFs, having made their debut on January 11, following the eagerly awaited nod from the Securities and Exchange Commission under Gary Gensler’s leadership, have not only captured Wall Street’s fascination but have also established a historic benchmark in the asset class.

Pompliano, affectionately known as “Pomp” in the crypto sphere, emphasized Wall Street’s burgeoning affection for Bitcoin. He highlighted that the introduction of spot Bitcoin ETFs has shattered previous records by achieving what no other ETF has managed in the past three decades. With over 5,500 ETFs launched in the last 30 years, none have seen the kind of initial inflow that the Bitcoin ETFs experienced, amassing $3 billion in their first month alone.

This achievement signals an unprecedented level of interest and investment in Bitcoin, with Pompliano revealing that these ETFs, particularly those introduced by BlackRock and Fidelity, are acquiring Bitcoin at a rate 12.5 times faster than it is being mined. The BlackRock ETF alone has witnessed an inflow of $4 billion worth of Bitcoin, while Fidelity has seen $3.5 billion. Other players like Bitwise and 21Shares have also reported significant inflows, each reaching $1 billion recently. This rapid accumulation has meant that these ETFs have cornered about 5% of the tradeable Bitcoin supply in just 30 days, considering that 80% of Bitcoin in circulation has been dormant for the past six months.

The enthusiasm doesn’t stop there. Pompliano further shared that Fidelity plans to integrate Bitcoin into its “All-in-one” ETF in Canada, allocating 1-3% of its Bitcoin holdings, including those from its spot Bitcoin ETF. This move underscores a broader trend of incorporating Bitcoin into diverse investment vehicles, reinforcing the cryptocurrency’s growing acceptance and integration into mainstream financial strategies.

As we observe Wall Street’s escalating commitment to Bitcoin, it’s clear that the digital currency is swiftly becoming a favored asset among investors, heralding a potential shift towards new all-time highs if the current trend persists.

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