BlackRock Buys Over 13 Days of Bitcoin Production: A Sign of Supply Shortage?
In its recent entry into the spot Bitcoin exchange-traded fund (ETF) market, BlackRock has purchased over 11,400 Bitcoins, prompting speculation of supply issues.
According to InvestAnswers, BlackRock bought 11,439 Bitcoins following the official launch of their spot Bitcoin ETF. This amount equates to over 13 days of Bitcoin production, considering the average daily issuance of around 900 Bitcoins.
“The key point is 11,500 BTC were sucked from the system in 2 days by 1 player,” said InvestAnswers. “That alone is approximately 13 days of supply.”
#Blackrock took 11,500 $BTC from Supply in 2 days
900 Bitcoin are issued daily, and you can see Blackrock's move into their cash supply from last night into Bitcoin, buying the dip. Now, they mostly hold Bitcoin.
The key point is 11,500 BTC were sucked from the system in 2 days… pic.twitter.com/GzoEk2uMSl
— InvestAnswers (@invest_answers) January 13, 2024
As BlackRock swallowed Bitcoin reserve with shocking speed, the biggest asset manager raised supply shortage concerns.
“IBIT Spot ETF only managed an average of 25% of the volume over two days – so we can assume 46K in 2 days was sucked out,” said InvestAnswers. “Net net, if this pace continues, we’re facing a severe supply crunch.”
“Assuming 11,500 x 4 = 46,000 or 23,000 per day, that’s 25.56 times the daily production consumed by US ETFs per day alone,” InvestAnswers shared the calculation.
The first-day exchange data indicated the Grayscale topped the trading volume ranking. However, according to Bloomberg Intelligence ETF analyst James Seyffart, it was a “very easy argument to be made that a ton of this volume was selling of GBTC and buying of other ETFs for now.”
The statistics showed that BlackRock’s iShares Bitcoin Trust was
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