According to a worrying new report, Bitcoin ETF issuers are buying up BTC 20 times faster than miners can produce new blocks.
This group bought over 9K on Friday and Monday, at an increasing rate. This high rate of consumption has persisted despite Bitcoin’s recent weakness, suggesting this trend will continue.
Bitcoin and ETF Issuers
Analysts noted that the Bitcoin ETF issuer purchased over 9K BTC FridayJanuary 3. This is a much higher rate than normal. However, on Monday, they increased this rate by buying more than 9.6K BTC.
“US Bitcoin Spot ETFs absorbed another (really huge) 9,624 BTC yesterday. Remember, only about 450 BTC are mined daily. This is the second working day with a purchase volume of over 9K. ‘Buy while you can’,” emphasize Shaun Edmondson.
Since the first Bitcoin ETF was approved, all 12 issuers have become the largest whales in the industry. In October, they bought five times the world’s Bitcoin mining output, and this number has increased to over 20 times.
By November, they held 5% of the total supply and soon surpassed Satoshi’s holdings.
Even though IBIT’s Bitcoin ETF was recently called “the biggest launch in stock exchange history,” the market is still in trouble heading into 2025. Last week, IBIT recorded an outflow of $330 million, broke its own record.
Other publishers face similar gloom. However, this bearish signal does not hinder BTC buying.
For months, the community was concerned that BlackRock and other ETF issuers would compromise Bitcoin’s inherent decentralization. This quick buying trend is reinforcing those concerns.
ETFs surpassed Satoshi’s holdings a month ago, but analyst Eric Balchunas note that they have made 4% progress to surpass the famous creator’s BTC amount.
Ultimately, this buying pressure could leave an irreversible impact on the cryptocurrency market. Just over two months ago, the ETF issuer mined five times the total amount of Bitcoin that miners could produce.
Currently, that number has surpassed miner output by 20 times, and bearish signals only lead to further buying. There are currently no countermeasures to counter this growing trend.
