US Ethereum Approval May Attract $5 Billion: Analysts Expect a Rise!

Cryptocurrency analysts evaluated possible scenarios for the spot Ethereum ETF.

K33 Research analysts touched on the impact a possible spot Ethereum ETF would have. Analysts said a supply of 800,000 ETH to 1.26 million ETH could be attracted by ETFs based on current Ethereum prices. In this regard, it was emphasized that 0.7% to 1.05% of the circulating supply could shift to ETFs.

However, it was predicted that there would be an estimated $3 billion to $4.8 billion inflow to spot Ethereum ETFs in the first five months. Analysts emphasized that an inflow of this amount of money would inevitably affect the Ethereum price positively.

Similar to Bitcoin ETF process

According to analysts, approximately 3.3% of Ethereum's circulating supply is currently in investment vehicles, and a steady downward trend has been seen since the crypto bull market peak in November 2021.

This reflects a similar trend for Bitcoin held in investment vehicles, with the spot Bitcoin ETF seeing a decline of up to 4.1% before its launch. According to K33, products traded on the Bitcoin exchange have since reached 5.6% of the circulating supply.

The following statements were included in the details of the statement made by analysts:

The thesis that futures ETFs are an unrepresentative outlier is strengthened by the fact that CME's ETH open interest currently accounts for 22.9% of BTC's size, while it has averaged 35% of BTC futures since launch, leading to U.S. An indication of significant institutional demand for ETH