• U.S. Spot Bitcoin ETFs drove a potential supply shock with surging BTC demand.
• Ethereum ETFs closed 2024 strong, signaling a possible shift in investor focus for 2025.

On the 7th of January, Bitcoin [BTC] once again surpassed the $100,000 milestone, peaking at $102,000 before encountering a sharp bearish turn. As of the latest update, the cryptocurrency has dropped by 6.21% in the past 24 hours, trading at $95,432.97.

This decline coincided with mounting concerns of a potential supply shock driven by surging demand from U.S. Spot Bitcoin ETFs.

Is Bitcoin ETF posing a risk to Bitcoin?

In December 2024 alone, these ETFs purchased an impressive 51,500 BTC—nearly quadrupling the 13,850 BTC mined during the same period as per Blockchain.com data.

Providing further insights on the same, an analyst took to X and noted, 

“Demand from ETFs alone was approx 272% more than the amount supplied.” 

He added, 

“They scooped 3X the nearly 14,000 bitcoins mined in December.”

As expected, the escalating demand for U.S. Spot Bitcoin ETFs has sparked growing concerns over a looming BTC supply shock, with analysts predicting its arrival soon.

Remarking on the same, crypto analyst Lark Davis issued a stark warning in December, emphasizing the scale of BTC accumulation by these ETFs.

Davis highlighted that during the second week of December, ETFs acquired an astonishing 21,423 BTC, while miners could produce only 3,150 BTC in the same timeframe.

Bitcoin ETF December trends explained

Meanwhile, on the 17th of December 2024, global Spot Bitcoin ETFs collectively held an impressive 1,311,579 BTC, valued at $139 billion. This equated to 6.24% of Bitcoin’s total supply of 19.8 million, highlighting their significant market influence.

Davis predicted that during peak bull market cycles, these ETFs could amass 10-20% of Bitcoin’s total supply, further amplifying fears of a major supply shock.

Supporting this concern, data from Glassnode shows that Spot Bitcoin ETFs witnessed a staggering $4.63 billion in net inflows for December, nearly doubling the 2024 monthly average of $2.77 billion.

Interestingly, this influx was concentrated in the first half of the month, with the second half seeing outflows—except for a notable spike on 26th December.

Can Ethereum ETF surpass Bitcoin ETF in 2025?

As of 7th January, Bitcoin ETFs recorded $52.4 million in inflows, a significant drop from the $978.6 million observed the previous day. Meanwhile, Ethereum [ETH] ETFs reported outflows totaling $86.8 million on the same date, according to Farside Investors.

Despite this, Ethereum ETFs have showcased impressive resilience, closing 2024 with $35 billion in total inflows. Therefore, analysts suggest this reflects growing confidence in Ethereum’s long-term value proposition.

With Bitcoin ETFs continuing to dominate in terms of market activity, Ethereum ETFs are steadily narrowing the gap.

Ergo, if these trends persist, 2025 could mark a pivotal shift in investor focus, potentially positioning Ethereum ETFs as front-runners in the crypto investment landscape.