Are Bitcoin ETFs a threat to BTC in 2025?

Bitcoin [BTC] surged past the $100,000 mark on January 7th, hitting $102,000 before experiencing a rapid downturn. Presently, the digital currency has fallen by 6.21% over the last 24 hours, trading at $95,432.97.

This drop was accompanied by growing worries regarding a potential supply disruption caused by the increasing demand from U.S. Spot Bitcoin ETFs.

Is the Existence of Bitcoin ETFs a Concern for Bitcoin?

In December 2024, these ETFs bought an impressive 51,500 BTC—nearly quadrupling the 13,850 BTC that were mined during the same period according to Blockchain.com data.

Offering additional perspective on the matter, an analyst commented on X and stated,

“The demand from ETFs alone exceeded the available supply by approximately 272%.”

He further mentioned,

The mounting demand for U.S. Spot Bitcoin ETFs has sparked concerns of an impending BTC supply disruption, with analysts predicting its occurrence in the near future.

In December, crypto analyst Lark Davis issued a stark warning, underscoring the extent of BTC accumulation by these ETFs.

Davis pointed out that in the second week of December, ETFs acquired a staggering 21,423 BTC while miners could only produce 3,150 BTC during the same timeframe.

Insights into Bitcoin ETF Trends in December

On December 17, 2024, global Spot Bitcoin ETFs collectively held an impressive 1,311,579 BTC, valued at $139 billion. This accounted for 6.24% of Bitcoin’s total supply of 19.8 million, showcasing their considerable market sway.

Davis projected that during peak bull markets, these ETFs might amass 10-20% of Bitcoin’s total supply, heightening concerns of a substantial supply shock.

Supporting this apprehension, data from Glassnode revealed that Spot Bitcoin ETFs witnessed a staggering $4.63 billion in net inflows for December, nearly doubling the monthly average of $2.77 billion in 2024.

Interestingly, this influx was concentrated in the first half of the month, with outflows observed in the latter half—except for a notable surge on December 26.

Could Ethereum ETFs Outpace Bitcoin ETFs in 2025?

As of January 7, Bitcoin ETFs recorded $52.4 million in inflows, a significant decline from the $978.6 million recorded the previous day. Meanwhile, Ethereum [ETH] ETFs saw outflows amounting to $86.8 million on the same day, as per Farside Investors.

Despite this, Ethereum ETFs have demonstrated resilience, concluding 2024 with a total of $35 billion in inflows. Consequently, analysts view this as a sign of increasing confidence in Ethereum’s long-term value proposition.

While Bitcoin ETFs continue to dominate in terms of market activity, Ethereum ETFs are slowly closing the gap.

Therefore, if these trends persist, 2025 could mark a significant shift in investor attention, potentially positioning Ethereum ETFs as leaders in the cryptocurrency investment sphere.