Bitcoin ETF attracts billions every quarter: what does it mean for supply and price?

As the Spot Bitcoin ETF injects $5 billion to $10 billion into the market every quarter, institutional demand for Bitcoin is accelerating.

This new wave of funding is tightening Bitcoin supply and reinforcing its long-term bullish structure.

Bitwise Chief Technology Officer Hong Kim cited data from Farside Investors stating that "ETF inflows have formed a 'clockwork precise' stable force," describing it as a "long-term trend that even a four-year cycle cannot stop," and predicting that "2026 will see another rise."

The continuous influx of funds reflects a profound transformation in the interaction between traditional finance and Bitcoin. This flagship cryptocurrency, once derided as a speculative asset, is now being embraced through regulated investment vehicles, bringing predictable and sustained liquidity.

The global crypto fund (including Bitcoin and Ethereum themed products) has surpassed $250 billion in managed assets, indicating that institutions are incorporating digital assets into diversified portfolios.

The stable inflow of institutional capital not only drives up prices but also reshapes the supply pattern of Bitcoin.

Bitwise Europe Research Director Andre Dragosh disclosed that by 2025, institutions have accumulated 944,330 Bitcoins, surpassing last year's total of 913,006.

In comparison, miners produced only 127,622 new coins this year, and institutional purchases were 7.4 times the supply of new coins.

This imbalance stems from the final approval of the Spot Bitcoin ETF by the U.S. Securities and Exchange Commission in 2024.

Approval triggers structural changes: the demand for regulated funds has suddenly surpassed supply, reversing the low institutional participation situation caused by policy uncertainty between 2020 and 2023.

BlackRock's entry through the iShares Bitcoin Trust is symbolic, prompting other giants to follow suit.

As the U.S. policy signals warm up and the recognition of Bitcoin as a treasury reserve asset increases, this trend continues until 2025. Some government-backed enterprises have begun to directly include Bitcoin in their balance sheets, highlighting its increasingly enhanced institutional credibility.

Given that there are still nearly three months left in the year and the inflow of funds shows no signs of slowing down, analysts expect the Bitcoin supply shortage to worsen.

The gap between issuance and demand indicates that ETF-driven asset accumulation has changed the market fundamentals, causing Bitcoin to gradually shed its speculative attributes and transform into a global financial tool with sustained institutional demand.