Given this staggering figure, Davis projects that during peak bull market phases, Spot Bitcoin ETFs could hold 10-20% of BTC’s total supply, raising more concerns about a major supply shock. Concentration Of Spot BTC Inflows In December Data from Glassnode has revealed that Spot Bitcoin ETFs recorded a total net inflow of $4.63 billion in December, almost doubling their 2024 monthly average of $2.77 billion.
This massive increase in demand for Spot Bitcoin ETFs has raised concerns about a potential BTC supply shock, with analysts suggesting that it could happen soon. Specifically, Lark Davis, a crypto analyst, announced earlier in December that "a massive supply shock is imminent.” The analyst based this alarming forecast on the significant accumulation of BTC from US Spot Bitcoin ETFs.
However, following this peak, BTC’s price saw a sharp decline, a drop that coincided with the timing of significant outflows from Spot Bitcoin ETFs, as reported by Glassnode. Despite the surge in demand for Spot Bitcoin ETFs in December, new data shows that investors have extended their accumulation trend into January 2025.
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