U.S. spot Bitcoin ETFs acquired 18,644 BTC last week – six times new supply from mining – as BlackRock’s fund led institutional demand despite regulatory uncertainty and price volatility.
BlackRock’s iShares Bitcoin Trust absorbed $2.5 billion in five days as institutional investors accumulated cryptocurrency at six times the mining production rate, creating unprecedented supply-demand dynamics while regulators delay Ethereum ETF approvals.
Wall Street’s Bitcoin Grab Intensifies
Financial institutions purchased 18,644 Bitcoin through spot ETFs from 17-21 June according to CoinShares data released June 24 – equivalent to 593% of the 3,150 BTC mined during that period. This institutional accumulation comes despite Bitcoin’s 20% price correction from June highs above $97,700 to $61,000.
The BlackRock Juggernaut
iShares Bitcoin Trust (IBIT) now holds 1.5% of all circulating Bitcoin – 305,000 BTC worth $18.6 billion as of June 27. The fund attracted $520 million daily average inflows last week, surpassing Fidelity’s FBTC in assets under management according to Farside Investors data.
Corporate Buyers Double Down
MicroStrategy purchased 11,931 BTC ($786 million) on June 20, expanding its treasury reserve to 226,331 BTC – 8.5% of circulating supply. CEO Michael Saylor called it ‘a capital allocation strategy for the digital age’ during a June 22 investor call.
Analysts Revise Market Forecasts
JPMorgan raised its 2024 Bitcoin ETF inflow projection by 50% to $45 billion in a June 25 research note, citing ‘structural demand shifts comparable to gold ETF adoption in 2004.’ The bank estimates ETF buying could absorb 30% of new Bitcoin supply through December.
Regulatory Headwinds Persist
The SEC postponed decisions on VanEck and Franklin Templeton’s Ethereum ETF applications to July, maintaining Chair Gary Gensler’s cautious stance. Speaking at a June 26 press briefing, Gensler warned: ‘Crypto volatility continues exposing investors to risks we’re duty-bound to address.’
Historical Parallels: The 2021 Institutional Wave
The current ETF accumulation pattern mirrors 2021’s institutional adoption surge when companies like Tesla and Square allocated portions of their treasuries to Bitcoin. That year saw Bitcoin reach $69,000 in November before crashing 55% amid Federal Reserve policy shifts – a volatility pattern regulators frequently cite in current hearings.
Precedent: Gold ETF’s Two-Decade Ascent
Analysts draw comparisons to SPDR Gold Shares (GLD), which took 17 years to accumulate $60 billion in assets after its 2004 launch. Bitcoin ETFs are on pace to reach equivalent AUM in under 18 months, suggesting accelerated adoption of digital store-of-value assets despite regulatory friction.
