The cryptocurrency market is witnessing an unprecedented surge in institutional demand as U.S. spot Bitcoin ETFs accumulated nearly triple the amount of Bitcoin produced by miners in December 2024.

This dramatic imbalance between supply and demand has pushed Bitcoin to new heights, reaching $108,135 on December 17.

ETF Giants Absorb 51,500 BTC While Miners Struggle to Keep Up

U.S. spot Bitcoin ETFs have amassed approximately 51,500 BTC in December alone, dwarfing the 14,000 new bitcoins introduced through mining during the same period.

This staggering 272% difference between ETF demand and new supply continues to intensify, with January showing even stronger momentum. Recent data reveals ETF inflows surpassing $900 million on January 3, with January 6 approaching the $1 billion mark.

Major mining operations, despite maintaining steady production, can’t match the growing institutional appetite. MARA Holdings led production with 9,457 BTC in December, while other significant players like Riot and Cleanspark contributed 516 and 668 BTC respectively.

Additional production from Core Scientific (291 BTC), Bitfarms (211 BTC), and Terawulf (158 BTC) further highlights the widening gap between supply and demand.

Market experts, including Onramp Bitcoin co-founder Jesse Myers, point to insufficient supply at current price levels, a situation that intensified following Donald Trump’s November presidential election victory.

Crypto researcher Vivek’s recent observation of Bitcoin exchange balances hitting new lows supports predictions of an incoming “supply shock.”