- US Spot Bitcoin ETFs caused a potential supply shock due to rising demand for BTC.
- Ethereum ETFs finished 2024 strong, signaling a possible shift in investor focus for 2025.
On January 7, Bitcoin [BTC] surpassed the $100,000 mark again, peaking at $102,000 before encountering a sharp bearish turn. From the last updatethe cryptocurrency is down 6.21% over the past 24 hours, trading at $95,432.97.
This decline coincided with growing concerns about a potential supply shock caused by rising demand from US Spot Bitcoin ETFs.
Does Bitcoin ETF pose a risk to Bitcoin?
In December 2024 alone, these ETFs purchased an impressive 51,500 BTC – nearly quadrupling the 13,850 BTC mined during the same period according to Blockchain.com facts.
Providing further insights into this, a analyst went to X and noted:
“Demand for ETFs alone exceeded supply by approximately 272%.”
He added:
“They won three times as much as the nearly 14,000 bitcoins mined in December.”
As expected, escalating demand for US Spot Bitcoin ETFs has led to growing concerns about an impending BTC supply shock, with analysts predicting its arrival soon.
Crypto analyst Lark Davis noted the same and issued a stark warning in December, highlighting the extent of BTC accumulation by these ETFs.
Davis highlighted that ETFs acquired a whopping 21,423 BTC in the second week of December, while miners were only able to produce 3,150 BTC in the same time frame.
Source: Lark Davis/X
Bitcoin ETF December trends explained
Meanwhile, as of December 17, 2024, the global Spot Bitcoin ETFs collectively held an impressive 1,311,579 BTC, worth $139 billion. This amounted to 6.24% of Bitcoin’s total supply of 19.8 million, underscoring their significant market influence.
Davis predicted that these ETFs could amass 10 to 20% of Bitcoin’s total supply during peak bull market cycles, further fueling fears of a major supply shock.
To support this care, data from Glass junction shows that Spot Bitcoin ETFs witnessed a staggering net inflow of $4.63 billion in December, nearly doubling the monthly average of $2.77 billion in 2024.
Interestingly, these inflows were concentrated in the first half of the month, while outflows occurred in the second half – apart from a notable peak on December 26.
Can Ethereum ETF Surpass Bitcoin ETF in 2025?
As of January 7, Bitcoin ETFs included $52.4 million in inflows, a significant decline from the $978.6 million seen the day before. Meanwhile, Ethereum [ETH] ETFs reported outflows totaling $86.8 million on the same date Farside Investors.
Despite this, Ethereum ETFs have shown impressive resilience, closing 2024 with total inflows of $35 billion. Therefore, analysts suggest that this reflects growing confidence in Ethereum’s long-term value proposition.
As Bitcoin ETFs continue to dominate in terms of market activity, Ethereum ETFs are steadily closing the gap.
Ergo, if these trends continue, 2025 could mark a pivotal shift in investor focus, potentially positioning Ethereum ETFs as frontrunners in the crypto investment landscape.
