The post Demand for Bitcoin ETFs Surges in December, Outpacing Supply by 272% Amid Market Momentum appeared on BitcoinEthereumNews.com.

The surge of Spot Bitcoin ETFs in the United States has caused a significant market imbalance, with demand outstripping miner production by a staggering ratio. In December 2024, a record-breaking influx of approximately 51,500 BTC to these ETFs highlights the growing institutional interest in Bitcoin as a key financial asset. According to Onramp Bitcoin co-founder Jesse Myers, “There’s not enough supply available at current prices to satisfy demand,” underscoring the market’s current dynamics. The US Spot Bitcoin ETFs saw record inflows in December 2024, accumulating 51,500 BTC while miners added only 13,850 BTC, signaling a market supply shock. Spot Bitcoin ETFs Drive Demand Beyond Production The recent performance of Spot Bitcoin ETFs illustrates a dramatic shift in market dynamics, reflecting heightened demand for Bitcoin. In December 2024, these investment vehicles accumulated around 51,500 BTC, while miners collectively produced a mere 13,850 BTC. This disparity of approximately 272% in demand versus supply has resulted in a significant price trajectory, pushing Bitcoin to an all-time high of $108,135 on December 17, as reported by CoinGecko. The overpowering interest from institutional investors in exchange-traded funds has created a situation where BTC supply is unable to meet demand. This imbalance is intensified by recent macroeconomic factors, including the potential impacts of government policies and economic shifts that have invigorated investor confidence in cryptocurrency. Mining Production Figures Underwhelm Amid this meteoric rise in ETF demand, Bitcoin mining companies have reported their production figures for December, which reveal a concerning outlook for the supply landscape. Major players such as Marathon Digital reported production of only 9,457 BTC, which pales in comparison to ETF inflows. Riot Blockchain and Cleanspark also contributed modest outputs of 516 BTC and 668 BTC, respectively, indicating a broader trend of insufficient mining output to satisfy soaring demand. These figures not only underscore…

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Filed under: News - @ January 7, 2025 4:23 am