• Surging Bitcoin ETF demand raises supply concerns, potentially opening opportunities for Ethereum ETFs to gain prominence.
  • Ethereum ETFs’ resilience and growing inflows suggest they could challenge Bitcoin ETF dominance in 2025.

Bitcoin (BTC) recently reached a high of $102,000 on January 7 before retreating to $95,432.97, marking a 6.21% drop in 24 hours. This decline aligns with concerns over a potential supply shock caused by surging demand from U.S. Spot Bitcoin ETFs .

As previously reported in a CNF update , Bitcoin posted a net 116% increase over 2024, and some analysts predict it could soar to $150,000 in January. In December 2024, Bitcoin ETFs purchased 51,500 BTC—far exceeding the 13,850 BTC mined during the same period.

Analysts like Lark Davis warn that such accumulation could strain Bitcoin’s supply, especially during peak bull markets when ETFs might hold 10-20% of BTC’s total supply. Andrew Kang, a community member, shared in a tweet that Bitcoin ETFs have brought new buyers into the market, boosting allocations within portfolios. He noted :

I was vocally bullish for Bitcoin at $25k when the BlackRock ETF application was submitted, and since then, it has returned 2.6x, with ETH returning 2.1x. From the cycle bottom, BTC has returned 4.0x, and ETH has returned a similar 4.0x. So how much upside would an ETH ETF provide? I would argue not much unless Ethereum develops a compelling pathway to improve its economics.

December Highlights Bitcoin ETF’s Dominance

By December 17, as CNF highlighted , while Bitcoin ETFs hit $112 billion in net assets, overall assets under management for ETH ETFs stand at $13.6 billion. At the time, global Bitcoin ETFs collectively held 1,311,579 BTC, valued at $139 billion—representing 6.24% of Bitcoin’s total supply. Glassnode data revealed net inflows of $4.63 billion for the month, nearly doubling 2024’s monthly average.

However, outflows in the latter half of December tempered this surge. On January 7, inflows to Bitcoin ETFs dropped sharply to $52.4 million from the previous day’s $978.6 million, highlighting volatility in ETF-driven demand.

Ethereum ETFs Could Take the Spotlight in 2025

Despite Bitcoin ETFs dominating the market, Ethereum ETFs are gaining traction. Ethereum ETFs ended 2024 with $35 billion in inflows, signaling growing investor confidence in Ethereum’s long-term value.

As of January 7, Ethereum ETFs saw outflows of $86.8 million, but analysts suggest their resilience could challenge Bitcoin ETFs’ dominance. If current trends hold, 2025 could see Ethereum ETFs emerge as key players in crypto investments, particularly as Bitcoin faces mounting supply concerns.

This evolving dynamic between Bitcoin and Ethereum ETFs hints at a potential shift in investor focus, underscoring Ethereum’s growing appeal as a diversified and sustainable investment choice.

At the time of writing, Bitcoin (BTC) is trading at $93,635.29, down 2.02% in the past day and 2.11% in the past week.

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