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⚡June Sees Bitcoin ETFs' Unprecedented Purchase🎉

Croxroad

10 Jun 2024 — 4 min read

☕️ GM Dear Plebs!

Here is Crox Road, your daily dose of orange pill that will turn you into a Bitcoin Maxi.

The menu for today:

⛏️ First Week of June

In the first week of June, spot Bitcoin exchange-traded funds (ETFs) in the United States acquired the equivalent of around two months’ worth of the cryptocurrency’s mining supply. With inflows amounting to approximately $1.83 billion, the 11 ETFs purchased 25,729 Bitcoin (BTC) between June 3 and June 7. This figure is nearly eight times the 3,150 BTC mined during the same period, according to data from HODL15Capital.

The amount of Bitcoin acquired in just one week was almost as much as the entire month of May, which saw 29,592 BTC purchased. This represents the largest weekly buying spree since mid-March when Bitcoin reached its current all-time high of $73,679. Since their launch on January 11, the 11 Bitcoin ETFs have experienced net inflows of $15.69 billion, despite $17.93 billion in net outflows from Grayscale’s fund, resulting in total assets under management (AUM) of around $61 billion.

Bitcoin proponents have long described the cryptocurrency as "digital gold" due to its built-in scarcity mechanism, which limits the total supply to 21 million BTC. ETF Store president Nate Geraci noted in a June 9 post that Bitcoin ETF AUM is now about 60% that of the country’s gold ETFs, despite the latter being around for 20 years and Bitcoin ETFs for only five months. Bitcoin touched a high of $71,093 on June 5 amid the surge of inflows to the U.S. Bitcoin ETFs, marking the first time the asset surpassed $71,000 since May 21. However, its price has struggled to exceed this high due to macroeconomic factors and geopolitical events, according to "Radar Bear," co-founder of a crypto exchange, in a statement to Cointelegraph on June 7.

👑 MicroStrategy's Saylor

Michael Saylor, the chairman of MicroStrategy and a prominent advocate for Bitcoin, recently made a compelling statement about the pseudonymous creator of Bitcoin, Satoshi Nakamoto. In a tweet, Saylor invoked the spirit of Satoshi, declaring that "Satoshi started a fire in cyberspace." Speaking metaphorically, Saylor describes Satoshi's creation of Bitcoin as starting a "fire in cyberspace," highlighting the revolutionary impact of this digital asset on the world.

Satoshi Nakamoto, whose true identity remains a mystery, released the Bitcoin whitepaper in 2008 and mined the first block of the Bitcoin blockchain in 2009. Satoshi's vision was to create a decentralised, peer-to-peer electronic cash system that operates independently of central authorities. This vision has since evolved into a global phenomenon, with Bitcoin leading the charge in the cryptocurrency revolution. The "fire" Saylor refers to might mean the spark of innovation that has ignited a global movement toward decentralised finance. Satoshi's Bitcoin creation has undoubtedly ignited a transformative force in the digital world, reshaping how we think about money, value, and decentralisation.

Bitcoin has seen a significant price increase in the past week, climbing to within 2.5% of its all-time high of $73,798, set in mid-March. This surge has been fueled by rising demand for exchange-traded funds (ETFs). At the time of writing, Bitcoin traded at $69,711, up almost 161% yearly. This year's boom accelerated after the Securities and Exchange Commission allowed ETFs that invest directly in Bitcoin in January. In May, the regulator took a step toward authorising comparable spot Ethereum ETFs. As Bitcoin considers its next price move, Ali, a crypto analyst, noted that it is anchored in a strong support zone between $69,380 and $67,350, where 1.97 million addresses acquired 964,000 BTC. Holding this level might be crucial for BTC to sustain its upward momentum. In a bullish undertone, Ali reported that approximately 22,647 BTC, worth over $1.57 billion, were recently withdrawn from crypto exchanges.

🪺 Yield

In the crypto world, "yield" refers to the returns or earnings generated on an investment or through various financial activities within the cryptocurrency ecosystem. This can include interest earned from lending crypto assets, rewards from staking cryptocurrencies, or returns from participating in decentralised finance (DeFi) protocols. Yield farming, a popular DeFi practice, involves providing liquidity to platforms in exchange for interest or additional tokens, often offering significantly higher returns compared to traditional financial systems.