Bitcoin News

Bitcoin At Risk Of Supply Shock As ETF Issues Buy More BTC Than Was Produced In December

Bitcoin ETF 1


Este artículo también está disponible en español.

The world’s largest cryptocurrency may be at risk of a supply shock as demand from United States (US) Spot Bitcoin Exchange Traded Funds (ETFs) has surged far beyond expectations. In December 2024, the volume of BTC acquired through Spot Bitcoin ETFs more than tripled the amount mined during that same month, underscoring the severe imbalance between supply and demand. 

Spot Bitcoin ETFs Trigger Supply Shock Risks

In December 2024, US Spot Bitcoin ETFs purchased an astonishing 51,500 BTC. On the other hand, BTC miners produced only 13,850 coins during the same period, according to data from Blockchain.com. This indicates that Bitcoin ETFs alone purchased nearly four times the amount BTC miners generated and supplied to the market that month. 

Related Reading

Source: Bitcoin Treasuries

According to reports, the demand for ETFs in December was nothing short of extraordinary, exceeding the available supply by approximately 272%. This massive increase in demand for Spot Bitcoin ETFs has raised concerns about a potential BTC supply shock, with analysts suggesting that it could happen soon. 

Specifically, Lark Davis, a crypto analyst, announced earlier in December that “a massive supply shock is imminent.” The analyst based this alarming forecast on the significant accumulation of BTC from US Spot Bitcoin ETFs. Davis disclosed that at some point in December, BTC ETFs had bought 21,423 BTC; meanwhile, miners had produced only 3,150 BTC around the same time. 

The analyst also noted that BTC ETFs globally held approximately 1,311,579 BTC as of December 17, 2024. This amount, valued at $139 billion, accounts for 6.24% of BTC’s total supply of 19.8 million. Given this staggering figure, Davis projects that during peak bull market phases, Spot Bitcoin ETFs could hold 10-20% of BTC’s total supply, raising more concerns about a major supply shock. 

Concentration Of Spot BTC Inflows In December

Data from Glassnode has revealed that Spot Bitcoin ETFs recorded a total net inflow of $4.63 billion in December, almost doubling their 2024 monthly average of $2.77 billion. Notably, Glassnode disclosed that the surge in Spot Bitcoin ETF inflows was more concentrated during the first half of the month, while the second half saw outflows, with December 26 being the exception. 

Related Reading

Bitcoin ETF 2
Source: Glassnode

Not surprisingly, the timing for this surge and…

Click Here to Read the Full Original Article at NewsBTC…