Crypto ETFs Absorb Bitcoin and Ethereum Faster Than New Supply

• Crypto ETFs’ demand for Bitcoin and Ethereum now matches or exceeds newly issued supply
• Ongoing ETF accumulation signals coins shifting from weaker holders to stronger hands

Crypto ETF fund flows are now moving faster than the new supply of Bitcoin and Ethereum. In the past seven days, purchases by crypto ETFs have not only matched but surpassed the number of new coins entering the market. Ethereum is the most prominent example: ETFs absorbed 67,532 ETH, while the network only minted 18,577 ETH.

Bitcoin’s situation is similar. Over the same timeframe, crypto ETFs purchased approximately 3,170 BTC, slightly exceeding the network’s new supply of around 3,150 BTC. This means that demand through crypto ETFs has fully captured the supply of new coins. However, the prices of these two major assets have not yet shown sharp movements.

Crypto ETFs Absorb Supply as Ownership Quietly Shifts

This situation provides an interesting insight into the current market structure. When fresh supply gets taken up without any price movement, it often signals that coins are moving from quick sellers to investors willing to hold longer.

However, this condition does not reflect weak buying interest. On the contrary, demand has exceeded supply, but selling pressure from some long-term holders continues to hold prices down.

In one week, Ethereum ETFs absorbed approximately $208 million, while Bitcoin ETFs attracted approximately $286 million. The figures make clear that substantial funds are entering the market while prices remain calm. Similar patterns have played out before, with institutions buying early and price reactions coming later, after the market has digested the inflows.

On the other hand, on December 8, we reported that Archax successfully tokenized the Canary HBR ETF and completed its first on-chain transaction on the Hedera network. This demonstrated how regulated ETF trading can operate smoothly on blockchain infrastructure.

A few days earlier, on December 5, we also highlighted inflows of $12.84 million in spot XRP ETFs in a single day, while Bitcoin and Ethereum ETFs recorded net outflows. At the same time, 21Shares launched trading on its TOXR product, adding a spot XRP option to the US market.

Early last December, we also reported on the launch of the Chainlink ETF, which immediately attracted interest with inflows of around $41 million.