BlackRock Withdraws Bitcoin Equivalent to 13 Days’ Supply, Sparks Concerns

Pro-Bitcoin advocate “InvestAnswers” brought attention to BlackRock’s notable acquisition of 11,500 BTC within two days.

BlackRock, recognized as one of the world’s largest asset management firms, reportedly absorbed this substantial amount, equivalent to about 13 days’ worth of Bitcoin production, given the daily issuance of approximately 900 BTC. At the prevailing market value of Bitcoin, BlackRock’s accumulation translates to an estimated $500 million.

BlackRock’s Spot ETF Impact

The disclosure further emphasized that during the same two-day period, BlackRock’s spot ETF accounted for only 25% of the total volume of Bitcoin ETFs. Considering this, it was suggested that 46,000 BTC was withdrawn from the market within the specified timeframe.

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According to the figures, if U.S. ETFs continue to withdraw Bitcoin at a daily rate of 23,000 BTC, they would accumulate it 25.56 times faster than its daily production. An analyst has warned that if this trend continues, the market could experience a significant shortage of Bitcoin supply.

This scenario could be exacerbated by the additional demand from retail investors, global ETFs, and other market participants looking to secure their BTC holdings.

Despite the concerns, the analyst concluded optimistically. They advise crypto market participants to overlook short-term price fluctuations. He suggested that the supply shortage could be pivotal in propelling Bitcoin’s market to unprecedented price levels.

In contrast, a commenter pointed out the tendency of BlackRock and other institutions to engage in over-the-counter (OTC) trading, commonly referred to as “dark pool” activity, as a strategic measure to mitigate market volatility.