Bitcoin ETFs Dwarf Miner Production: Inflows Surge to Record Levels

BlackRock's iShares Bitcoin Trust dominates as spot ETFs overwhelm mining output.

Spot Bitcoin exchange-traded funds (ETFs) have outpaced Bitcoin mining production by a staggering margin, setting new records in the cryptocurrency market.

According to preliminary data unveiled by Cointelegraph, on Monday, Feb. 12, a staggering $493.4 million flooded into spot Bitcoin ETFs, equivalent to approximately 10,280 Bitcoin. This surge in investment marked a stark contrast to the output of Bitcoin miners for the same period.

Leading the charge was BlackRock’s iShares Bitcoin Trust, which witnessed an immense inflow of $374.7 million. Fidelity's Wise Origin Bitcoin Fund followed closely with $151.9 million, while Ark 21Shares Bitcoin ETF saw inflows of $40 million. Despite Grayscale experiencing outflows of $95 million and the Invesco Galaxy ETF witnessing a $20.8 million withdrawal, the net inflows totaled almost half a billion dollars. In comparison, Bitcoin miners produced merely around 1,059 BTC, valued at approximately $51 million, as reported by Blockchain.com. This starkly contrasts with the overwhelming demand witnessed in the ETF market, where investors eagerly absorbed Bitcoin at an unprecedented rate.

This trend persisted on Feb. 9, with ETFs accumulating around 12,700 BTC or $541.5 million, far surpassing the 980 BTC worth approximately $45 million added through mining activities. Once again, BlackRock emerged as a dominant force, attracting a staggering $250.7 million inflow, followed by Fidelity with $188.4 million. Ark 21Shares saw substantial inflows of $136.5 million, contributing to the bumper day of aggregate inflows, despite Grayscale experiencing its lowest outflow for the week at $51.8 million.

The surge in ETF investment relative to mining production underscores the growing institutional interest and appetite for exposure to Bitcoin, reshaping the dynamics of the cryptocurrency market.