In December 2024, the demand for United States (US) Spot Bitcoin Exchange Traded Funds (ETFs) exceeded expectations, leading to concerns about a potential supply shock for Bitcoin. During that month, BTC ETFs purchased nearly four times the amount of BTC mined by miners. The demand for ETFs in December exceeded the available supply by approximately 272%. Crypto analyst Lark Davis warned of an imminent supply shock based on the significant accumulation of BTC by ETFs. Data showed that BTC ETFs globally held around 1.31 million BTC, accounting for 6.24% of the total supply. Spot Bitcoin ETFs recorded a total net inflow of $4.63 billion in December. However, BTC's price saw a decline following its peak, which coincided with significant outflows from ETFs. Despite this, investors continued to accumulate BTC through Spot Bitcoin ETFs in January 2025.



Other News from Today