Bitcoin At Risk Of Supply Shock As ETF Issues Buy More BTC Than Was Produced In December
US Spot Bitcoin ETFs experienced unprecedented demand in December 2024, purchasing 51,500 BTC, while miners produced only 13,850 BTC, leading to a supply-demand imbalance of approximately 272%. Analysts, including Lark Davis, predict an imminent supply shock due to this accumulation. As of December 17, 2024, global BTC ETFs held about 1,311,579 BTC, representing 6.24% of the total supply. During December, Spot Bitcoin ETFs recorded net inflows of $4.63 billion, nearly double the monthly average for 2024. The inflow surge was concentrated in early December, coinciding with Bitcoin's price peak above $108,000 on December 17. Following this peak, significant outflows occurred, aligning with a price decline. The accumulation trend continued into January 2025, with over $900 million in BTC purchased through Spot Bitcoin ETFs on January 3 and an additional acquisition of 9,500 BTC shortly thereafter.
