Anthony Pompliano, founder of Pomp Investments, underscored the voracious appetite of institutional investors for Bitcoin, which briefly touched the $50,000 mark in Monday morning trading.
He pointed to the historic achievement of the Blackrock iShares Bitcoin Trust (NASDAQ: IBIT) and Fidelity Wise Origin Bitcoin Fund (BATS: FBTC) funds, which reached $3 billion in assets under management (AUM) within their first 30 days—a feat never before seen in the over 5,500 ETF launches in history.
This milestone is further amplified by the bullish momentum of funds like Bitwise and Ark 21Shares, each on the brink of hitting $1 billion in inflows.
The staggering demand is quantified by Pompliano, who noted, “The inflows from these funds are doing $500 million a day of net inflows, but there’s only 900 bitcoin coming into the daily incoming supply.” This discrepancy highlights a demand that outpaces the daily production of Bitcoin by 12.5 times, a dynamic that is inevitably pushing prices upward.
The conversation delved into the mechanics behind this surge, with ETFs playing a pivotal role.
“You measure the actual net inflows, right. And so you can just see there’s way more buying pressure,” Pompliano said and added that this buying pressure has not only elevated the funds managed by giants like Blackrock and Fidelity but has also significantly impacted the market cap and liquidity of Bitcoin.
Pompliano shed light on a fascinating aspect of Bitcoin’s market dynamics, revealing that “80% of all Bitcoin in circulation has not moved in the last six months.”
This means that only about $200 billion of Bitcoin is actually tradable, making the recent ETF activities even more impactful as they “sucked up 5% of the entire tradable supply of Bitcoin in 30 days.”
Why It Matters: The implications of this trend extend beyond mere numbers.
Pompliano discussed the broader macroeconomic context, including the rampant money printing by central banks and the debasement of fiat currencies.
In such an environment, Bitcoin and other cryptocurrencies are not just investment…