Ethereum Spot ETFs Could Absorb Over 1 Million ETH in First 5 Months

Between $3.1 billion and $4.8 billion in net inflows during the first five months of trading, according to analysts at K33 Research.

The analyst estimates are based on market size comparisons between bitcoin and ether, K33 senior analyst Vetle Lunde and DeFi analyst David Zimmerman said in a Tuesday report.

According to analysts, around 3.3% of the circulating supply of ether is currently in investment vehicles and has been in a consistent bearish trend since the peak of the cryptocurrency bull market in November 2021. This mirrors a similar trend for the bitcoin held in investment vehicles, falling to 4.1% before the Bitcoin ETF advertising launch. Since then, Bitcoin exchange-traded products have grown to 5.6% of the circulating supply, according to K33.

Globally, existing Ethereum ETPs hold 28.2% of the assets under management held by their Bitcoin counterparts, excluding US Bitcoin spot ETFs, the analysts added, and in Canada and Europe, that figure is approximately 33%.

While US Ethereum futures ETFs undercut that overall figure, making up just 5% of their Bitcoin counterparts, Lunde and Zimmerman argue this is due to a mismatch in the timing of their respective launches in rather than being representative of investment demand.

“The thesis that futures ETFs are an unrepresentative outlier is reinforced by CME's ETH open interest, which currently represents 22.9% of BTC size, while averaging a 35% share of futures of BTC since its launch, indicating significant institutional demand for ETH in the United States,” the analysts added.

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