BlackRock Withdraws Over 11,000 Bitcoins from the Market for Its ETF
The first batch of Bitcoin (BTC) spot ETFs hit the market last week. Following this, Paweł Łaskarzewski, the co-founder of Synapse Network, pointed out some movements by BlackRock that caught the attention of the Bitcoin community. One such movement was the massive withdrawal of bitcoins that the investment giant made from the market.
According to Łaskarzewski, in just two days, the prominent investment giant withdrew 11,500 BTC from the market. Accounting for more than 25% of the total that the manager's ETF, the IBIT, captured on its first day of trading.
In a post on his X profile, Łaskarzewski emphasized that BlackRock's quick acquisition signifies a strategic shift for the manager. Moreover, it is an aggressive move considering the current daily production of only 900 BTC. In summary, BlackRock withdrew from the market after the equivalent of almost 13 days of mining.
Finally, the analyst highlighted the noteworthy approach of buying in the dip, a move that reflects confidence in the value of Bitcoin. Indeed, BlackRock's CEO, Larry Fink, recently praised the cryptocurrency, stating that it is a protection against governments.
BlackRock's acquisition removed 11,500 BTC from the system in just two days, which is about 13 days of the normal daily supply. Łaskarzewski said that the scale of this substantial movement underscored the "accelerated pace of institutional adoption" of cryptocurrency, especially with the arrival of ETFs.
The impact of BlackRock's iShares Bitcoin Trust (IBIT) was examined. Despite managing only 25% of the total volume of Bitcoin ETFs in two days, considering the influence of GBTC, about 46,000 BTC might have been withdrawn. This suggests a potential signal of an imminent supply crisis.
"In conclusion, BlackRock's significant withdrawal of BTC in a short period of time highlights the accelerated pace of institutional adoption. The potential supply crisis emphasizes the growing importance of Bitcoin in the financial landscape," he concludes.
