The Bitcoin market has been experiencing significant momentum, reflected in growing investor interest and substantial inflows into US Bitcoin Spot ETF. With over 19.7 million Bitcoins already in circulation—representing 94.10% of the total supply of 21 million BTC—the scarcity narrative is becoming more pronounced, leading to increased demand from both retail and institutional investors.
Recent Inflows into US Bitcoin Spot ETF
According to recent data, US Bitcoin Spot ETF have witnessed a surge in daily inflows, with a standout net inflow of $494.27 million on September 27, 2024. This is by far the largest inflow recorded in recent weeks, indicating a renewed interest in Bitcoin, likely spurred by its post-halving dynamics, acceptance of global financial institutions, and increased media attention.
Other notable daily inflows during this period include:
- September 26, 2024: $365.57 million
- September 23, 2024: $135.95 million
- September 18, 2024: $186.76 million
This influx of capital into Bitcoin ETF has raised the total net assets in these funds to an impressive $61.21 billion, with Bitcoin’s price hovering at approximately $65,139.00 per coin as of September 27, 2024. This suggests that investors remain bullish on Bitcoin’s long-term value, even amidst market volatility.
The Impact of Bitcoin’s Halving on Supply and Mining
Adding to the excitement, the Bitcoin halving event, which occurred earlier this year, has reduced the block reward from 6.25 BTC to 3.125 BTC. Consequently, only 450 BTC are now mined daily, further contributing to the scarcity of the cryptocurrency.
Given that over 94.10% of the total Bitcoin supply is already in circulation, the daily influx of new Bitcoins is minuscule in comparison to growing demand. This scarcity is reflected in the increasing inflows into Bitcoin ETF, as investors seek exposure to the asset before the remaining supply is fully mined.
US BTC Spot ETF Inflows as a Bullish Indicator
The sustained positive net inflow into Bitcoin ETF, particularly in the final week of September 2024, suggests that institutional and retail investors are positioning themselves for further price appreciation. With the Bitcoin supply nearing its upper limit and daily mining yields at just 450 BTC, the fundamental drivers of scarcity and demand are becoming more pronounced.
This trend is not just a reflection of Bitcoin’s status as a store of value, but also highlights the growing recognition of Bitcoin ETF as a gateway for mainstream investors to participate in the crypto economy. As more countries and financial institutions embrace Bitcoin ETF, the net inflows could continue to rise, further supporting Bitcoin’s price in the coming months.
Conclusion
The reduced Bitcoin supply following the halving event, combined with rising global institutional demand, is shaping market dynamics. This influx of capital into Bitcoin ETF reflects the ongoing engagement of investors in Bitcoin. With over 19.7 million already in circulation, the window of opportunity for acquiring Bitcoin before the supply cap is reached is closing quickly. Investors are clearly responding to this reality, as demonstrated by the significant ETF inflows recorded in late September 2024.
Disclosures: Not investment advice. The Author, Sarson Funds, Inc. and its affiliated managers may hold positions in the projects mentioned. Talk with your financial advisor before making any investment decisions or have them contact Sarson Funds directly at [email protected].
