Institutional Bitcoin Demand Surpasses Mining Supply for First Time in Six Weeks

Institutions Return to Bitcoin Accumulation

Institutional demand for Bitcoin has surpassed the daily supply of newly mined coins for the first time since early November, signaling renewed corporate interest in the cryptocurrency despite prices remaining more than 30% below October's all-time highs.

According to data from quantitative Bitcoin and digital asset fund Capriole Investments, institutions have been purchasing more BTC than miners are adding to the supply for the past three days ^[1]. Currently, institutions are buying 13% more than the daily mined supply, though this figure remains modest compared to the peak of the bull market two months ago ^[1].

This marks the first time that corporate demand alone has produced a net reduction on the BTC supply since the start of November ^[1]. However, the landscape has shifted from recent months, as Charles Edwards of Capriole Investments noted that in the last month there have been no new treasury companies, while there have been first-time treasury company sells ^[1].

Market Transition Amid ETF Outflows

The renewed institutional buying comes against a backdrop of significant outflows from US spot Bitcoin exchange-traded funds. Data from UK-based investment company Farside Investors shows net ETF outflows totaling $635 million since Monday ^[1].

Despite these outflows, onchain analytics platform CryptoQuant described the current situation as "a market in transition, where short-term pessimism contrasts with strategic accumulation" ^[1]. The platform noted that network fundamentals support market entries, even as capital flows out of investment vehicles like ETFs.

"This divergence between institutional outflows and the conviction of major players underscores that Bitcoin oscillates between immediate stress and long-term expectations of appreciation," concluded contributor GugaOnChain in one of CryptoQuant's Quicktake blog posts ^[1].

Broader Market Context

The shift in institutional demand occurs as the cryptocurrency market faces broader challenges. Bitcoin has been trading below $90,000 in recent days ^[2], while macroeconomic pressures continue to influence investor sentiment.

The Hong Kong stock market fell to its lowest level in three weeks amid growing investor fears about China's deteriorating growth prospects ^[2]. Internationally, the US Federal Reserve's cautious tone following its 25 basis point interest rate cut earlier this month has made investors fearful of a global economic lull, despite rate cuts historically favoring risk-on assets like cryptocurrency ^[2].

Crypto Industry Developments

The institutional activity comes as the cryptocurrency industry continues to navigate regulatory developments. HashKey Holdings, a Hong Kong-based crypto company, recently raised $206 million through an IPO priced at HK$6.68 per share, attracting cornerstone investors including UBS AM Singapore, Fidelity, and CDH ^[2]. The company's shares closed at HK$6.48 per share on their debut, down 3% from the IPO price ^[2].

HashKey CEO Xiao Feng expressed optimism about the industry's future despite current market conditions. "I'm even more optimistic now than I was a decade ago, as we're seeing new legislation and clearer compliance standards being introduced, which will help the industry move forward sustainably," Feng said ^[2].

Meanwhile, the US Senate Banking Committee has pushed back the introduction of crypto market structure legislation until early 2026, as the committee continues to weigh the potential risks and benefits of cryptocurrency regulation ^[2].