Following the recent approval of the first batch of ETFs, Synapse Network co-founder Paweł Łaskarzewski has spotlighted BlackRock’s significant actions in the crypto realm. The investment giant rapidly withdrew an immense 11,500 BTC from circulation within just two days.
Łaskarzewski, in a recent X post (formerly known as Twitter), highlighted that BlackRock’s swift move, particularly in the context of around 900 BTC being mined daily, signals a strategic shift. The company’s strategy to buy during a market dip showcases its strong belief in Bitcoin’s long-term value.
Examining BlackRock’s Bitcoin ETF (IBIT)
The 11,500 BTC withdrawal by BlackRock over two days, equating to nearly 13 days of typical daily supply, underscores an “accelerated institutional adoption rate” in the cryptocurrency sector.
The influence of BlackRock’s iShares Bitcoin Trust (IBIT) was examined, noting that even though it managed just 25% of the volume in those two days, combined with GBTC’s impact, an estimated 46,000 BTC could have been removed from the market. This suggests the likelihood of an impending supply squeeze.
Łaskarzewski commented that at a sustained rate of 23,000 BTC per day, the consumption by US ETFs alone is about 25.56 times the daily production. This figure doesn’t include retail investors and other global ETFs, indicating a potential severe supply shortage ahead.
The Wave of Institutional Buying
Should this trend of institutional purchasing continue, the market might face a significant supply shortage. While Bitcoin’s price may see fluctuations, the fundamental scarcity of the asset is becoming more apparent.
Despite concerns regarding high fees linked with GBTC, the introduction of the Bitcoin ETF has been deemed a considerable achievement.
Łaskarzewski stated that actions by major institutions like BlackRock highlight the increasing relevance of Bitcoin in traditional finance.
“To sum up, BlackRock’s considerable Bitcoin withdrawal in a short period underscores the speed of institutional adoption. This possible supply constraint emphasizes Bitcoin’s growing significance in the wider financial context.”