Key points
- US Bitcoin ETFs purchased 18,644 BTC vs. 3,150 mined.
- Weekly net inflows reached $1.8bn, led by BlackRock’s IBIT.
- ETF accumulation hints at supply squeeze and strong institutional interest.
Bitcoin ETFs Outpace Miners 6-to-1: What’s Driving It?
Bitcoin (BTC) ETFs in the United States accumulated 18,644 BTC last week, nearly six times the total mined supply of just 3,150 BTC, according to HODL15Capital. This growing imbalance between ETF demand and miner output is signaling a supply squeeze that traders and long-term investors are watching closely. Backed by bullish momentum, BTC ETFs saw $3.06B in net inflows as of April 26, the second-highest weekly total, followed by $1.81B from April 28 to May 2, marking three consecutive weeks of positive flows.
The surge in ETF accumulation reflects institutional conviction, even as Bitcoin trades sideways near the $94,000 level. The sharp uptick in inflows suggests investors may be positioning ahead of potential upside catalysts, such as easing financial restrictions or macroeconomic shifts.
BlackRock’s IBIT Dominates the Flows
Leading the inflow charge is BlackRock’s iShares Bitcoin Trust (IBIT), which saw $2.5 billion in net inflows over the last five trading days. The ETF has now recorded 17 consecutive days without an outflow, highlighting persistent institutional demand despite market volatility.
Nate Geraci, President of ETF Store, noted that Bitcoin ETFs have surged into a $110 billion category despite being restricted on many wealth platforms. “They’re operating with one hand tied behind their backs,” he said.
“Imagine the flows once those restrictions are lifted.”
Bitcoin Price Action, Supply-Demand Imbalance, and Funding Rates
Bitcoin briefly rallied to a six-week high of $97,800 on May 2 following strong ETF inflows, before retracing to around $94,000, roughly its price level from a week earlier. While spot prices appear stable, the sustained ETF accumulation highlights growing institutional demand, even amid short-term volatility.
However, derivatives market signals are showing early signs of caution. According to CryptoQuant, funding rates across all exchanges turned negative on May 3 and 4, coinciding with Bitcoin’s pullback. These negative rates suggest traders were increasingly betting on a correction or locking in gains.
Funding flipped back to positive on May 5, potentially indicating renewed long interest or dip-buying behavior. This divergence between strong spot accumulation and hesitant derivatives sentiment could lead to short-term consolidation before the next directional move.
For investors, this environment reflects a tightening supply backdrop, driven by ETF flows absorbing over 6x the mined BTC supply. For traders, price support near $94K remains a critical zone to watch. A clean breakout above $97K could signal bullish continuation, but only if backed by consistent volume and neutral-to-positive funding dynamics.
