Bitcoin’s recent surge to $102,000 has been followed by a decline to $95,432, reflecting concerns about the potential supply shock caused by the rising demand for U.S. Spot Bitcoin ETFs.
In December 2024, Bitcoin ETFs purchased 51,500 BTC, far surpassing the 13,850 BTC mined during that period.
Analysts warn that such accumulation could strain Bitcoin’s supply, particularly during bull markets when ETFs might hold a significant portion of BTC’s total supply.
Ethereum ETFs Gaining Traction
While Bitcoin ETFs dominate the market, Ethereum ETFs are gaining ground. Ethereum ETFs ended 2024 with $35 billion in inflows, signaling increasing investor confidence.
Although Ethereum ETFs experienced outflows in early January 2025, analysts believe their resilience could allow them to challenge Bitcoin ETFs’ dominance in the coming year.
Potential Shift in Investor Focus
The growing appeal of Ethereum as a diversified investment choice may lead to a shift in investor focus.
With Bitcoin facing mounting supply concerns, Ethereum ETFs could become a key player in the crypto investment space, offering an alternative to Bitcoin’s potential supply strain.
At the time of writing, Bitcoin is trading at $93,635.29, reflecting a 2.02% drop in the past day and a 2.11% dip over the past week.