Bitcoin Could Face Historic Supply Crunch as Spot ETF Inflows Accelerate

COINOTAG recommends • Exchange signup Trade with pro tools Fast execution, robust charts, clean risk ￰0￱ account → Bitcoin supply crunch is underway as institutional buying through spot ETFs far outstrips new issuance, creating sustained scarcity and upward price ￰1￱ bought ~944,000 BTC in 2025 while miners produced ~127,000 BTC, making ETF demand a dominant driver of market liquidity and allocation ￰2￱ demand exceeds new issuance: Spot ETF inflows of $5–$10B per quarter are creating predictable, large-scale ￰3￱ data: institutions acquired ~944,000 BTC vs ~127,000 BTC mined in ￰4￱ supply crunch: Institutional buying via spot ETFs outpaces new issuance—learn how this scarcity affects price action and institutional ￰5￱ ￰6￱ is the Bitcoin supply crunch?

Bitcoin supply crunch refers to a market condition where institutional demand for BTC, especially via spot ETFs, outpaces new Bitcoin ￰7￱ creates persistent scarcity, shifts price drivers toward allocation flows, and reduces the influence of retail-driven ￰8￱ are spot ETFs driving institutional buying? Spot ETFs provide regulated access, transparent pricing, and settlement infrastructure that large allocators ￰9￱ inflows of $5–$10 billion via these vehicles create steady, predictable ￰10￱ to Bitwise and industry commentary, institutions bought roughly 944,000 BTC in 2025 while miners produced about 127,000 BTC, a roughly 7:1 ￰11￱ does this matter for Bitcoin’s halving cycle?

Halving reduces miner issuance, but ETF-driven demand can overwhelm that supply ￰12￱ institutional accumulation becomes the dominant flow, halving timing matters less for short-term liquidity because capital entering through ETFs is both predictable and substantial. , How much has institutional demand outpaced supply? Institutions have acquired roughly 944,000 BTC in 2025, while miners produced about 127,000 BTC during the same ￰13￱ gap—approximately seven times new issuance—creates a structural imbalance that can compress available liquidity and support higher prices if inflows ￰14￱ mainstream firms and experts say Industry voices note a lasting ￰15￱ CTO Hong Kim described ETF inflows as arriving “like clockwork,” characterizing this phase as an institutional ￰16￱ asset managers adopting spot Bitcoin ETFs have reframed Bitcoin as a strategic allocation rather than purely speculative ￰17￱ Asked Questions How do spot ETFs change Bitcoin custody and circulation?

Spot ETFs typically hold bitcoin in custodial wallets, removing coins from liquid trading ￰18￱ reduces supply available on exchanges and can increase scarcity if ETFs accumulate over ￰19￱ retail investors still drive large price moves? Retail remains influential in short bursts, but predictable, large-scale institutional flows tend to dominate sustained directional moves because of their size and regulatory ￰20￱ Takeaways Supply-demand mismatch : Institutional purchases (~944k BTC) far exceed miner issuance (~127k BTC) in ￰21￱ ETFs as demand engine : ETFs provide predictable inflows ($5–$10B quarterly) that institutionalize Bitcoin ￰22￱ structure shift : Allocation by pensions, asset managers, and corporates is making scarcity a structural ￰23￱ Bitcoin’s supply crunch, driven by relentless institutional buying through spot ETFs, marks a structural change in market ￰24￱ demand outpacing issuance, allocation decisions from large funds will increasingly shape price ￰25￱ ETF inflows, custodial balances, and miner issuance to gauge ongoing scarcity and policy impacts.

Publication: COINOTAG — 9 October 2025 | 10:00 Reporter: Alexander Zdravkov (reported for COINOTAG). Background: 3+ years in crypto reporting; fluent in German; focuses on market structure and liquidity ￰26￱ recommends • Exchange signup Smarter ￰27￱ ￰28￱ analytics and risk features in one ￰29￱ up →