Bitcoin ETFs are pulling in ~$10B per quarter: What that means for supply and price

Institutional demand for Bitcoin is accelerating as spot exchange-traded funds (ETFs) inject between $5 billion and $10 billion into the market each quarter.

This wave of fresh capital is helping to tighten the asset’s supply and reinforce its long-term bullish structure.

Bitwise Chief Technology Officer Hong Kim, citing Farside Investors’ data, said ETF inflows have become a steady force, arriving “like clockwork.” He described the pattern as “an unstoppable secular trend that even the four-year cycle cannot stop,” while adding that “2026 is going to be an up year.”

These inflows reflect a deeper shift in how traditional finance interacts with Bitcoin. Once dismissed as speculative, the flagship crypto is now being absorbed through regulated investment vehicles that bring predictable and sustained liquidity.

As a result, global crypto funds, including investment vehicles focused on BTC and Ethereum, have crossed $250 billion in assets under management (AUM), signaling institutional conviction in digital assets as part of diversified portfolios.

Crypto ETPs Assets Under Management (Source: Bitwise)

ETF demand outpaces Bitcoin’s new supply

Meanwhile, the steady influx of institutional capital is not only driving prices but also reshaping Bitcoin’s supply dynamics.

Bitwise’s European Head of Research, André Dragosch, revealed that institutions have acquired 944,330 BTC in 2025, surpassing the 913,006 BTC accumulated throughout 2024.

By comparison, miners have produced only 127,622 BTC this year, meaning institutional purchases outpace new supply by roughly 7.4 times.

Bitcoin Institutional Demand (Source: Bitwise)

This imbalance has its roots in 2024, when the US Securities and Exchange Commission (SEC) approved spot Bitcoin ETFs after years of hesitation.

The approval triggered a structural shift: demand from regulated funds suddenly exceeded supply, reversing a trend that had persisted between 2020 and 2023, when uncertainty and lack of oversight kept institutional participation low.

BlackRock’s entry through its iShares Bitcoin Trust epitomized the change, encouraging other major firms to follow suit. The momentum has since carried into 2025, aided by friendlier US policy signals and broader recognition of Bitcoin as a treasury reserve asset.

Some companies, including those linked to government circles, now directly hold Bitcoin on their balance sheets, underscoring its growing institutional legitimacy.

With nearly three months left in the year and inflows showing no signs of slowing, analysts expect Bitcoin’s supply crunch to deepen.

The growing mismatch between issuance and demand highlights how ETF-driven accumulation has transformed the market’s fundamentals, positioning Bitcoin less as a speculative asset and more as a global financial instrument with enduring institutional demand.

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