Spot Ethereum ETFs will legitimize cryptocurrencies, leading to an ETH supply crisis

Crypto accounting software company Integral on June 3 said the launch of a spot Ethereum ETF will likely lead to an ETH supply crunch at launch.

The forecast reflects the sentiment surrounding the Bitcoin ETF spot before its launch earlier this year. Since then, these ETFs have seen record inflows, with BTC supply on centralized exchanges decreasing significantly.

Integral predicts that ETF issuers will buy and hold large amounts of ETH, thereby removing a portion of ETH from the open market and driving up cryptocurrency prices.

This trend appears to be taking hold as over $3 billion in ETH has left exchanges since the SEC approved spot ETH approval on May 23 – causing ETH reserves on exchanges to hit new levels. lowest in 6 years.

Integral said the distinct staking trends will add to supply scarcity and noted that around 25% of ETH supply is currently staked. According to the company, ETF issuers will not directly participate in staking, but participants will benefit from price increases.

Additionally, Integral believes that the approval will drive increased institutional adoption of ETH and validate the cryptocurrency as a legitimate asset class. Furthermore, it could spark an “altcoin season” as demand for ETH spreads to other cryptocurrencies.

A spot ETH ETF is expected to launch in the coming weeks or months.

====>>>> Altcoin to the moon