FameEX Hot Topics | Bitcoin ETFs Acquired Nearly Three Times the BTC Mined in December

Spot Bitcoin exchange-traded funds (ETFs) in the United States accumulated approximately 51,500 BTC in December 2024, nearly tripling the 13,850 BTC produced by miners during the same period. According to data averaged from Apollo and BiTBO, the unprecedented demand from ETFs highlighted the growing institutional interest in Bitcoin as an investment asset. The supply-demand imbalance suggests a potential price squeeze, as production struggles to keep pace with surging demand.

Bitcoin’s price momentum was driven by strong activity in spot markets, reaching an all-time high of $108,135 on December 17, as reported by CoinGecko. Blockchain.com data revealed that ETF demand alone outpaced supply by roughly 272%, reflecting investor confidence despite limited availability. Jesse Myers, co-founder of Onramp Bitcoin, noted that the market lacks sufficient supply at current prices to meet demand. He emphasized the need to restore supply-demand equilibrium, especially as momentum accelerated following Donald Trump’s presidential election victory in November.

On January 6, crypto researcher ‘Vivek’ predicted an incoming “supply shock” after observing BTC exchange balances falling to historic lows. Meanwhile, ETF inflows continued to surge into January, with over $900 million recorded on January 3 alone. Preliminary data suggests January 6 could see even larger inflows, approaching $1 billion, indicating sustained institutional appetite and further pressure on limited supply.

Major Bitcoin mining companies reported mixed production figures for December. Marathon Digital, the largest mining firm by market cap, led production with 9,457 BTC. Riot mined 516 BTC, reflecting a 4% increase over November, while Cleanspark produced 668 BTC. Core Scientific added 291 BTC, Bitfarms mined 211 BTC, Terawulf generated 158 BTC, and cloud mining provider BitFuFu reported producing 111 BTC.

Despite mining efforts, production remains insufficient to match ETF-driven demand. This mismatch highlights the growing influence of institutional investors and Bitcoin ETFs in driving market trends. Analysts predict that continued inflows and limited supply could fuel further price appreciation, solidifying Bitcoin’s position as a dominant asset class and reinforcing its appeal among 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.