Institutional demand for Bitcoin is accelerating as Spot Exchange Trade Funds (ETFs) are injected into the market every quarter between $5 billion and $10 billion.
This fresh wave of capital helps to strengthen assets supply and strengthen its long-term bullish structure.
Bitwise Chief Technology Officer Hong Kim cited Farside investors data and said the influx of ETFs has been a steady force and has arrived “like clockwork.” He described the pattern as “an unstoppable secular trend that even a four-year cycle cannot be stopped,” adding, “2026 will be the New Year.”
These influxes reflect a deeper shift in how traditional finance interacts with Bitcoin. When dismissed as speculative, the flagship code is absorbed through regulated investment vehicles that provide predictable and sustained liquidity.
As a result, global crypto funds, which include investment vehicles focused on BTC and Ethereum, have surpassed $250 billion in assets under management (AUM), signaling the institution's convictions in digital assets as part of a diversified portfolio.
ETF demand outweighs new supply of Bitcoin
Meanwhile, a steady inflow of institutional capital not only drives prices, but also restructures the supply dynamics of Bitcoin.
Bitwise's European Research Director André Dragosch revealed that in 2025 the institution had acquired 944,330 BTC, beyond the 913,006 BTC accumulated in 2025.
In comparison, miners have produced only 127,622 BTC this year. In other words, institutional purchases will be about 7.4 times more than the new supply.
This imbalance has its roots in 2024, when the US Securities and Exchange Commission (SEC) approved the Spot Bitcoin ETF after years of hesitation.
The approval caused structural changes. Demand from regulated funds suddenly exceeded supply, reversing the persistent trend between 2020 and 2023.
The BlackRock entry through the Ishares Bitcoin Trust symbolized change and encouraged other major companies to follow suit. This momentum has since been carried to 2025, supported by a more friendly US policy signal and broader recognition of Bitcoin as a Treasury protected asset.
Some companies, including those linked to government circles, currently hold Bitcoin directly on their balance sheets, highlighting their growing institutional legitimacy.
With nearly three months remaining a year, analysts expect the Bitcoin supply crunch to deepen as the inflow shows no signs of slowing down.
The increasing discrepancy between issuance and demand highlights how ETF-driven accumulation has changed the fundamentals of the market, positioned Bitcoin as a lesser speculative asset and as a global financial instrument with lasting institutional demand.
