Institutional investors’ demand for Bitcoin is accelerating as spot traded funds (ETFs) inject between $5 billion and $10 billion into the market quarterly.
This new wave of funds has helped tighten asset supply and strengthen the long-term bullish structure.
Bitwise Chief Technology Officer Hong Kim cited data from Farside Investors and said the ETF influx is steadily flowing “like clockwork.” He described this pattern as “a long-term trend that cannot be stopped even in a four-year cycle,” adding, “2026 will be a year of goodness.”
These influxes reflect a deeper shift in the interaction between traditional finance and Bitcoin. Once ignored as speculative, the flagship cryptocurrency is now being absorbed through regulated investment instruments that provide predictable and sustainable liquidity.
As a result, global crypto funds, including investment instruments focused on BTC and Ethereum, have over $250 billion in assets under management (AUM), demonstrating institutional confidence in digital assets as part of their diversified portfolio.
Demand for ETFs surpasses new Bitcoin supply
Meanwhile, the steady inflow of institutional investors not only pushes prices up, but also restructures the supply dynamics of Bitcoin.
Bitwise’s head of European research, Andre Dragosch, revealed that the financial institution acquired 944,330 BTC in 2025, surpassing the cumulative total of 913,006 BTC throughout 2024.
By comparison, miners produced just 127,622 BTC this year, meaning institutional purchases are about 7.4 times higher than new supply.
The root of this imbalance goes back to 2024, when the Securities and Exchange Commission (SEC) approved spot Bitcoin ETFs after years of hesitation.
This approval caused structural changes. Demand from regulated funds suddenly outweighed supply, reversing the trend that continued from 2020 to 2023, when financial institutions were low due to uncertainty and lack of monitoring.
BlackRock’s entry through iShares Bitcoin Trust symbolized this change, urging other major companies to follow suit. This momentum has continued until 2025, aided by a more friendly policy signal from the US and a broader recognition of Bitcoin as a treasury reserve asset.
Some companies, including government officials, currently own Bitcoin directly on their balance sheets, highlighting the increased institutional legitimacy.
With nearly three months remaining this year, analysts expect the supply tightness of Bitcoin will become even more serious as there are no signs of sluggish cash flows.
The growing mismatch between issuance and demand highlights how ETF-led accumulations transform market fundamentals and position Bitcoin as a global financial product with persistent institutional demand, rather than as a speculative asset.
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