David Edwards
In December 2024, spot Bitcoin exchange-traded funds (ETFs) in the US amassed roughly 51,500 BTC, which is nearly three times the 13,850 BTC that was mined during that same time frame. An impending supply shortage that may lead to more price hikes is highlighted by this exceptional demand, which is being driven by institutional adoption and strong market momentum.
Spot ETFs Predominate in the Acquisition of Bitcoin
For U.S. spot Bitcoin ETFs, December turned out to be a historic month. Apollo and BiTBO data show that these funds took in almost 272% more Bitcoin than miners created, indicating strong investor interest in the leading cryptocurrency.
A major factor was the price movement of Bitcoin, which according to CoinGecko reached an all-time high of $108,135 on December 17, 2024. The general optimism in the market after Donald Trump’s reelection in November contributed to the increase.
Jesse Myers, co-founder of Onramp Bitcoin, emphasized the growing imbalance: “There’s not enough supply available at current prices to satisfy demand.” He pointed out that in order to stabilize, the market would have to find a new supply-demand balance.
January Keeps Up the Good Inflows
The pattern continued into January 2025. Bitcoin ETFs purchased more than $900 million worth of BTC on January 3 alone. According to preliminary estimates, inflows could approach $1 billion on January 6. As demand exceeds supply, cryptocurrency expert Vivek pointed out that Bitcoin exchange balances had fallen to all-time lows and predicted an impending “supply shock.”
Demand Outpaces Production of Bitcoin Miners
Large Bitcoin miners found it difficult to meet the growing demand. The bulk of the new supply came from MARA Holdings, the biggest miner by market capitalization, which reported producing 9,457 BTC in December. Other noteworthy contributors were:
Riot Blockchain: 516 BTC was mined, a 4% monthly gain.
In December, Cleanspark generated 668 BTC.
Core Scientific: Produced 291 Bitcoin using its in-house fleet.
Bitfarms: Said to have mined 211 BTC.
158 BTC was produced by Terawulf.
BitFuFu: Made 111 Bitcoin contributions.
Only 13,850 BTC were introduced to circulation by miners combined, despite their best efforts, which was not enough to satisfy demand fueled by ETFs.
Consequences of a Stricter Bitcoin Market
The market is experiencing a severe supply shortage as a result of exchange balances falling and ETFs absorbing Bitcoin at previously unheard-of levels. This dynamic, according to analysts, has the potential to push Bitcoin to new heights; some anticipate that values could reach $200,000 in 2025.
The scarcity story around Bitcoin seems set to propel the next stage of its bull market as institutional interest increases and mining output fails to keep up.
