Bitcoin ETFs are on a buying spree like you wouldn’t believe. In December, the funds purchased almost three times the amount of Bitcoin that miners actually produced. US spot Bitcoin ETFs collectively scooped up 51,500 BTC.
What Santa-rally?
December turned out to be a golden month for Bitcoin ETFs, with an influx of cash that helped push the price of Bitcoin above that oh-so-psychological $100K level.
On December 17, BTC hit a new all-time high of $108,135, thanks to some serious market momentum, but the big thing is miners only added 13,850 new Bitcoins to the supply during the same month.
So, in simple terms, ETFs were on a buying binge, accumulating about 272% more BTC than what was mined.
Crypto researcher Vivek shared in an X post that exchange balances for BTC have plummeted to historic lows, and this has created a bit of a supply bottleneck.
#Bitcoin balance on exchanges hits an all time low.
Supply shock incoming 🚀 pic.twitter.com/BkEmFfWeE7
— Vivek⚡️ (@Vivek4real_) January 6, 2025
With exchanges running low on liquidity, he warned that we might be facing an impending supply shock. So prices will go up? There’s a chance.
January inflows
Fast forward to January, and it looks like the party isn’t over yet, as US spot Bitcoin ETFs enjoyed their second day in a row of net inflows on January 6, raking in around $978.6 million into their reserves.
Leading the charge is BlackRock’s IBIT ETF, which saw impressive inflows of $253.1 million on January 3 and another $209.1 million on January 6.
It’s almost alway BlackRock, btw. But don’t sleep on Fidelity’s FBTC either, it was the star performer with $357 million on January 3 and another $370.2 million few days later.
Optimism in the market
Bitwise’s BITB also recorded positive net flows both days, while ARKB saw inflows of $16.5 million and $222.6 million on January 2 and January 6, respectively. VanEck got in on the action too, adding over $10 million across both days.
Even Grayscale’s GBTC got back into the game after a quiet start to the month, pulling in $73.8 million just yesterday. The smaller BTC fund also saw net inflows during this period.
All this excitement comes as Bitcoin has managed to reclaim its spot above the $100K level again before some corrections.
