FameEX Hot Topics | Bitcoin ETFs Purchased Nearly Three Times More BTC Than December's Production

In December 2024, U.S.-based spot Bitcoin exchange-traded funds (ETFs) accumulated approximately 51,500 BTC, nearly tripling the 13,850 BTC produced by miners during the same period. Data from Apollo and BiTBO highlighted this unprecedented demand, reflecting growing institutional interest in Bitcoin as a key investment asset. The significant supply-demand gap suggests a potential price squeeze as production struggles to keep pace with surging demand.  

Bitcoin’s price momentum was fueled by strong activity in spot markets, reaching an all-time high of $108,135 on December 17, according to CoinGecko. Blockchain.com data indicated that ETF demand exceeded supply by approximately 272%, underscoring investor confidence despite limited availability. Jesse Myers, co-founder of Onramp Bitcoin, noted the insufficient supply at current prices and stressed the importance of restoring supply-demand balance. He also pointed out that market momentum accelerated after Donald Trump’s presidential election victory in November.  

On January 6, crypto researcher ‘Vivek’ warned of an incoming “supply shock” as BTC exchange balances dropped to historic lows. ETF inflows showed no signs of slowing, with over $900 million recorded on January 3 alone. Preliminary data suggests January 6 could surpass $1 billion in inflows, reflecting sustained institutional appetite and further pressure on Bitcoin’s limited supply.  

Bitcoin mining companies reported varying production figures for December. Marathon Digital, the largest miner by market capitalization, led with 9,457 BTC. Riot produced 516 BTC, marking a 4% increase over November, while Cleanspark mined 668 BTC. Core Scientific added 291 BTC, Bitfarms produced 211 BTC, Terawulf generated 158 BTC, and BitFuFu reported 111 BTC.  

Despite these mining efforts, production remains insufficient to meet the demand driven by ETFs. This imbalance highlights the increasing influence of institutional investors and ETFs in shaping market trends. Analysts predict continued inflows and restricted supply could drive further price gains, cementing Bitcoin’s status as a dominant investment asset for both institutional and retail investors.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.