Key Points
- U.S. Spot Bitcoin ETFs have driven potential supply shock with surging BTC demand.
- Ethereum ETFs ended 2024 strongly, indicating a possible investor focus shift in 2025.
Bitcoin [BTC] crossed the $100,000 mark once more on January 7th, reaching a peak of $102,000 before experiencing a sharp bearish turn.
As per the latest update, the cryptocurrency has decreased by 6.21% in the past day, trading at $95,432.97.
Concerns about Bitcoin ETFs
This drop is happening alongside growing worries about a possible supply shock triggered by increasing demand from U.S. Spot Bitcoin ETFs.
In December 2024, these ETFs bought an impressive 51,500 BTC, almost four times the 13,850 BTC mined during the same period according to Blockchain.com data.
An analyst commented on this, stating that the demand from ETFs was approximately 272% more than the supplied amount.
He further added that these ETFs bought 3X the nearly 14,000 bitcoins mined in December.
Bitcoin ETF December Trends
On December 17th, 2024, global Spot Bitcoin ETFs collectively held an impressive 1,311,579 BTC, valued at $139 billion.
This constituted 6.24% of Bitcoin’s total supply of 19.8 million, underlining their substantial market influence.
Analyst Davis predicted that during peak bull market cycles, these ETFs could amass 10-20% of Bitcoin’s total supply, further intensifying fears of a significant supply shock.
Ethereum ETFs on the Rise
On January 7th, Bitcoin ETFs recorded $52.4 million in inflows, a substantial decrease from the $978.6 million noted the previous day.
However, Ethereum [ETH] ETFs reported outflows totaling $86.8 million on the same date, according to Farside Investors.
Despite this, Ethereum ETFs have demonstrated impressive resilience, ending 2024 with $35 billion in total inflows.
Analysts suggest this indicates 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.
If these trends continue, 2025 could mark a significant shift in investor focus, potentially positioning Ethereum ETFs as leaders in the crypto investment landscape.
