Spot Bitcoin ETFs Outpace Supply in December, Backpack Exchange Buys FTX’s EU Operations, and Metaplanet Eyes 10K BTC Purchase

Takeaways

• Spot bitcoin ETFs in the US acquired 51,500 bitcoin in December, nearly quadruple the 13,850 BTC mined: Spot bitcoin ETF-driven demand could create a supply shock that would drive prices higher in the coming months. But the price of bitcoin pulled back below $93,000 this week after reports the US government might sell $6.5 billion worth of bitcoin seized from Silk Road.
• Backpack Exchange has reportedly acquired FTX EU after regulatory approval: The exchange, founded by ex-FTX and Alameda staff, would be the managing entity for FTX EU bankruptcy claims. But the FTX bankruptcy estate released a statement claiming Backpack has no control over redistributing the funds, adding that the press release announcing the sale went out without approval.
• Terraform Labs founder Do Kwon has pleaded not guilty to fraud charges in US court following extradition: Prosecutors allege he misled investors about terraUSD's stability. Kwon's case is expected to go to trial in January 2026.
• Metaplanet is aiming to quintuple its bitcoin holdings to 10,000 BTC by leveraging capital markets: The Tokyo-listed firm already holds 1,761.98 bitcoin, currently worth close to $180 million. The move continues a recent trend of corporate and investment entities stockpiling bitcoin as a reserve asset.

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Spot Bitcoin ETFs Accumulate nearly four times December’s Mined BTC Amid Supply Squeeze

Spot bitcoin ETFs in the US acquired 51,500 bitcoin in December 2024, dwarfing the 13,850 produced by miners during the same period. This ETF-driven demand reportedly represented 272% of the monthly supply. Bitcoin's price peaked at an all-time high of $108,135 on December 17, driven by surging spot market activity.

A January 6 report also highlighted bitcoin exchange balances hitting record lows, with researchers predicting a potentially imminent supply shock. On Friday last week, spot bitcoin ETFs added over $900 million in inflows. But the price of bitcoin has subsequently pulled back this week, dropping below $93,000 on Thursday as the market weighed the veracity of a report that the US government was poised to sell some $6.5 billion in bitcoin originally seized from Silk Road.

In mining, MARA Holdings led December’s production with 9,457 bitcoin. Riot produced 516 bitcoin and Cleanspark came in third with 668 bitcoin mined. Other contributors included Bitfarms (211 BTC) and Terawulf (158 BTC). With total US bitcoin ETF holdings now nearing $110 billion, some analysts have projected bitcoin to see more significant gains throughout the year.

Backpack Acquires European Branch of Collapsed FTX

Backpack Exchange, a crypto trading and digital wallet platform founded by former employees of FTX and Alameda Research, has acquired FTX EU. This acquisition of the European arm of the collapsed FTX exchange was approved by the Cyprus Securities and Exchange Commission, enabling Backpack Exchange to oversee the distribution of its bankruptcy claims.

Armani Ferrante, CEO of Backpack Exchange, stated they believe customer restitution and rebuilding trust in the industry to be the main focus of the acquisition. Backpack Exchange was last valued at roughly $120 million in early 2024. Under the new entity, Backpack EU reportedly also plans to offer advanced crypto derivatives to European users as part of a broader European expansion.

The FTX bankruptcy estate has taken issue with the approved sale, claiming Backpack will not be responsible for redistributing funds. Former FTX EU head Patrick Gruhn disputed that assertion.

“I assume FTX wanted to make clear that FTX has no direct relationship with Backpack and will not distribute funds from the U.S. bankruptcy estate,” Gruhn said. However, FTX EU will be renamed to Backpack EU and will of course distribute the former FTX EU funds to the clients.”.

In January 2024, FTX declared that it would forgo restarting operations and instead focus on liquidating assets to reimburse customers. Under the reorganization plan approved in October the same year, 98% of creditors will receive 119% of their approved claims dating back to November 2022 when its collapse took place.

Do Kwon Pleads Not Guilty to US Fraud Charges Following Extradition

Do Kwon, the founder of Terraform Labs and the Terra Luna crypto ecosystem, pleaded not guilty to charges of fraud in the US after being extradited on December 31. Terraform Labs, under Kwon’s leadership, developed the cryptocurrency luna and the algorithmic stablecoin terraUSD, which collapsed in 2022, erasing around $40 billion in value.

Do Kwon is facing multiple charges, including securities fraud, commodities fraud, and conspiracy to commit money laundering. US federal prosecutors have alleged that Kwon misled investors one year before the ecosystem’s collapse about the algorithm designed to peg terraUSD’s to the value of the US dollar. His trial is set for January 2026.

Kwon was also arrested in Montenegro in March 2023 on charges of passport forgery and had been contesting his extradition for over a year. With his prosecution having loomed over the crypto space for some time, Kwon’s extradition marks a crucial point in resolving one of the most significant collapses in recent crypto history.

Metaplanet Targets Over 10,000 Bitcoin in 2025 Amid Strategic Expansion

Japanese investment firm Metaplanet is planning to significantly expand its bitcoin treasury, targeting holdings of 10,000 bitcoin this year. If carried out, this would represent more than a fivefold increase from its current holdings of 1,761.98 bitcoin, worth approximately $180 million.

Metaplanet began incorporating bitcoin into its strategic reserves in May 2024 and has since increased its holdings. Its most recent acquisition was on December 23, when it purchased 619.7 bitcoin after raising $60.6 million through bond issuance. The company’s leadership has stated it is focused on creating value for shareholders while also enhancing its influence in the broader Bitcoin ecosystem.

Despite Metaplanet’s stock rising 2.73% on Monday, Japan’s Nikkei 225 index fell broadly by 1.48% on the same day. MicroStrategy still remains the largest corporate bitcoin holder globally, with 446,400 bitcoin in its treasury.

-The Gemini Team