Do Bitcoin ETFs pose a risk to BTC in 2025?

• US Spot Bitcoin ETFs brought on a possible provide shock as a consequence of rising demand for BTC.
• Ethereum ETFs completed 2024 sturdy, signaling a potential shift in investor focus for 2025.

On January 7, Bitcoin [BTC] surpassed the $100,000 mark once more, peaking at $102,000 earlier than encountering a pointy bearish flip. From the final updatethe cryptocurrency is down 6.21% over the previous 24 hours, buying and selling at $95,432.97.

This decline coincided with rising issues a couple of potential provide shock attributable to rising demand from US Spot Bitcoin ETFs.

Does Bitcoin ETF pose a danger to Bitcoin?

In December 2024 alone, these ETFs bought a formidable 51,500 BTC – practically quadrupling the 13,850 BTC mined throughout the identical interval based on Blockchain.com facts.

Offering additional insights into this, a analyst went to X and famous:

“Demand for ETFs alone exceeded provide by roughly 272%.”

He added:

“They received thrice as a lot because the practically 14,000 bitcoins mined in December.”

As anticipated, escalating demand for US Spot Bitcoin ETFs has led to rising issues about an impending BTC provide shock, with analysts predicting its arrival quickly.

Crypto analyst Lark Davis famous the identical and issued a stark warning in December, highlighting the extent of BTC accumulation by these ETFs.

Davis highlighted that ETFs acquired a whopping 21,423 BTC within the second week of December, whereas miners have been solely capable of produce 3,150 BTC in the identical timeframe.

Supply: Lark Davis/X

Bitcoin ETF December developments defined

In the meantime, as of December 17, 2024, the worldwide Spot Bitcoin ETFs collectively held a formidable 1,311,579 BTC, price $139 billion. This amounted to six.24% of Bitcoin’s whole provide of 19.8 million, highlighting their vital market affect.

Davis predicted that these ETFs might amass 10-20% of Bitcoin’s whole provide throughout peak bull market cycles, additional heightening fears of a significant provide shock.

To assist this care, knowledge from Glass junction reveals that Spot Bitcoin ETFs witnessed a staggering web influx of $4.63 billion in December, practically doubling the month-to-month common of $2.77 billion in 2024.

Curiously, these inflows have been concentrated within the first half of the month, whereas outflows occurred within the second half – apart from a notable peak on December 26.

Can Ethereum ETF Surpass Bitcoin ETF in 2025?

As of January 7, Bitcoin ETFs included $52.4 million in inflows, a major decline from the $978.6 million seen the day gone by. In the meantime, Ethereum [ETH] ETFs reported outflows totaling $86.8 million on the identical date Farside Investors.

Regardless of this, Ethereum ETFs have proven spectacular resilience, closing 2024 with whole inflows of $35 billion. Subsequently, analysts counsel that this can be a reflection of rising confidence in Ethereum’s long-term worth proposition.

As Bitcoin ETFs proceed to dominate when it comes to market exercise, Ethereum ETFs are steadily closing the hole.

Ergo, if these developments proceed, 2025 might mark a pivotal shift in investor focus, probably positioning Ethereum ETFs as frontrunners within the crypto funding panorama.