Bitcoin Magazine: Will Bitcoin ETFs Surpass 1 Million BTC Before 2025?

2024 has been a massive year for bitcoin. The start of the year saw the creation of nearly a dozen ETFs that buy and hold bitcoin on their balance sheet. That was followed by the halving in April. And many companies are starting to buy bitcoin ahead of changing accounting rules at the end of next year.

Where does this leave investors today? Looking ahead, the strong rise of bitcoin ETF assets suggests that prices have more room to head higher.

With accelerating inflows to ETFs, it’s possible that these funds could hold over 1 million bitcoin by year end. Exchanges report dwindling reserves, meaning there is less to buy.

Remember, bitcoin has a maximum supply of 21 million. Of that, several million remain lost. Today, the rise of demand via ETFs has allowed them to reach a total of 936,830.

Meanwhile, inflows to EFTs hit $6.52 billion in November, a $1 billion increase over October.

Overall, those funds bought 75,000 bitcoin. Given that bitcoin mining for the month was just 13,500, demand far exceeds what can be brought to market.

This imbalance between demand and new supply suggests far higher prices for bitcoin in 2025.

Today, 2.25 million bitcoin remain on exchanges, down from 2.6 million at the start of the year. Typically, lower exchange balances have historically also occurred at times when the price has driven higher.

To read the full details on bitcoin’s current supply and demand fundamentals, click here.