🚨 ETH Supply Surge is a Major Concern for Spot Ethereum ETF
In the last three months, Ethereum's supply has surged by 150,000. The upcoming spot Ethereum ETF approval might help absorb some of this increase.
- Ethereum supply has been growing by 60,000 ETH per month since April 2024.
- Analysts suggest final capitulation for the ETH/BTC trading pair may begin in September 2024.
- Spot Ethereum ETF approval could help absorb some of the increased supply.
Details:
Popular analyst Benjamin Cowen noted the Ethereum supply increase since April. He added that if this continues, the supply by December could match pre-Merge levels from September 2022.
Cowen also mentioned that monetary policy will be a key driver for Ethereum’s price. Without a Fed pivot to quantitative easing, a major price surge is unlikely.
If historical patterns hold, Cowen suggests the ETH/BTC capitulation may start in September 2024, similar to 2016 trends.
Will Spot Ethereum ETF Absorb the Supply?
Investors are eager for the spot Ethereum ETF debut next week, expecting strong inflows. Major issuers like BlackRock and Fidelity have announced their fee structures. Analysts predict multi-billion dollar inflows by the end of 2024, though this may not occur immediately after the approval.
