According to Ethereum Founder, There Will Be a Supply Shortage in the Market

According to Joe Lubin, one of the founders of Ethereum, a supply shortage awaits the markets.

Speaking to DL News, Lubin expects a supply shortage in ETH once spot Ethereum ETFs are approved in the US.

According to Lubin, people who have already invested in spot Bitcoin ETFs “will probably want to diversify their portfolios with the second approved ETF.”

“There will be a pretty big, natural push to buy Ethereum,” said Lubin, CEO and founder of Consensys. However, according to Lubin, these ETFs will have more difficulty buying Ethereum compared to Bitcoin.

Spot Bitcoin ETF issuers can easily purchase BTCs on the market through their contracted institutions or exchanges. However, according to blockchain data, 27% of the total Ethereum supply is used for staking purposes.

This means that Ethereum ETFs planned to be established may have problems with supply. In addition, with the increase in mobility in the blockchain, the amount of ETH removed from circulation will also increase.