Spot Bitcoin ETFs accumulated an impressive 51,500 BTC, according to data from Apollo and BiTBO.
In comparison, only about 13,850 Bitcoins were added to the circulating supply during the same period, according to Blockchain.com.
ETFs Drive Bitcoin Surge, Outpacing Mining Production
This demand from ETFs was a major driving force behind Bitcoin’s strong performance, with the cryptocurrency hitting an all-time high of $108,135 on December 17, according to CoinGecko. Bitcoin ETF demand outpaced supply by a staggering 272%.
“There’s not enough supply available at current prices to satisfy demand,” explained Jesse Myers, co-founder of Onramp Bitcoin . The soaring demand came on the heels of Donald Trump’s presidential election victory, which sparked a rally in Bitcoin’s price and attracted more investors into the space.
Source: heyapollo
While ETFs were buying up Bitcoin at a rapid pace, mining operations were struggling to keep up. The largest mining firm by market cap, MARA Holdings, produced 9,457 BTC in December. Other mining companies reported smaller numbers, with Riot producing 516 BTC, Cleanspark mining 668 BTC, and Core Scientific adding 291 BTC.
Bitcoin ETFs Fuel Supply Shock as Demand Surges
Even combined, these figures were a drop in the bucket compared to the 51,500 BTC purchased by ETFs. “The market is seeing a supply shock,” said crypto researcher Vivek, referring to the shrinking Bitcoin supply. As of January 6, Bitcoin exchange balances had fallen to new lows, signaling that supply was running dry as demand surged.
#Bitcoin balance on exchanges hits an all time low.
Supply shock incoming 🚀 pic.twitter.com/BkEmFfWeE7
— Vivek⚡️ (@Vivek4real_) January 6, 2025
So, Bitcoin ETFs continued their aggressive buying spree in January. On January 3, over $900 million worth of Bitcoin was acquired, with preliminary data suggesting that nearly $1 billion in Bitcoin was purchased on January 6. As one expert put it, the writing is on the wall—supply-demand equilibrium must be restored.
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