Key Points
- The total net inflows for Bitcoin ETFs total $217M on May 6.
- Meanwhile, public Bitcoin mining companies saw a production decline in April of 6% to 12%.
The latest reports coming from SoSoValue reveal that the total net inflows for Bitcoin ETFs on May 6 were $217 million.
- Grayscale’s Bitcoin ETF GBTC saw a single-day net inflow of almost $4 million.
- Fidelity’s Bitcoin ETF FBTC recorded a single-day net inflow of a little over $99 million.
- Ark Invest and 21Shares Bitcoin ETF ARKB recorded a single-day net inflow of over $75 million.
- BlackRock’s Bitcoin ETF, IBIT, recorded a single-day net inflow of $22 million.
Regarding Bitcoin’s price today, at the moment of writing this article, BTC is trading above $63k, down by about 1% on CoinMarketCap.
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The other day, Bitcoin managed to surpass the important level of $65k. A day before, the Bitcoin network marked its one billionth transaction.
As it seems that the interest in Bitcoin ETFs continues to attract more investors, Bitcoin mining companies, on the other hand, reported a decline in production for April.
Bitcoin mining companies see a decline in April
According to the latest reports from Hut 8, which is one of the largest Bitcoin mining companies in North America by total power capacity under management, there’s been a sharp drop in proprietary production for the last month.
The company released a monthly update on May 6, showing that it mined 148 BTC with its proprietary mining fleet in April. This represents a 36% drop in production compared to March.
This implies a realized hashrate of 3.44 EH/s in April, down 51% from Hut 8’s peak of 6.27 EH/s in December following the merger with USBTC.
Hut 8’s drop in production was driven mostly by the relocation of proprietary miners previously hosted in the Kearney and Granbury sites. These were bought by Marathon back in December from the previous owner.
Other public mining companies, including Bitfarms, Cipher, CleanSpark, Core Scientific, Riot, and Terawulf, have also reported a production decline of between 6% and 12% for April.
The Bitcoin fee market hedged the impact of the Bitcoin halving, which took place on April 20. The halving slashed miner rewards from 6.25 BTC to 3.125 BTC.
According to The Miner Mag, Bitcoin miners bagged $109 million on having a day as the hash price soared to two-year highs. Reports showed that on-chain activities on the Runes protocol, which was also launched on the halving day, have elevated transaction fees to account for 80% of total block rewards since the halving.
Although the halving event cut miner rewards in half, the BTC mining companies have remained optimistic, as reported the previous month.
The Bitcoin halving event catalyzed a shift towards more efficient operations and capital deployment, and it represents a great opportunity for scaled, well-capitalized miners.
Chief executives of the mining companies remained bullish, addressing low-cost operations, more effective equipment, and the growing demand for Bitcoin. Bitcoin ETFs, Ordinals, and Runes protocol are set to be catalysts for Bitcoin.
Last month, Berenstein’s analysts stated that the strong economic activity coming from Ordinals should be helpful for miners.
The Bitcoin Ordinals protocol offers a way to store and trade digital content on Bitcoin.
Runes, the new fungible token standard for Bitcoin, offers a more efficient solution than the UTXO bloat caused by the existing BRC-20 minting process.
