• 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.