Galaxy said ETH spot ETFs could see net inflows of $5 billion in the first five months. Demand for new products is expected to come from independent investment advisors and broker/dealer platforms. However, a lack of staking rewards may limit demand for these spot ETFs. 😅

ETH spot ETFs are close to trading after the U.S. Securities and Exchange Commission (SEC) approved applications last month. The regulator must also approve S-1 applications before the products are ready for trading. Spot bitcoin ETFs launched in the US in January. 🚀

ETH will be more price sensitive to ETF inflows than bitcoin due to the total supply of ETH locked up in staking, bridges and smart contracts, and the lower amount held on centralized exchanges. However, Galaxy warned that spot ether ETF demand may be limited due to a lack of staking rewards. 😬

The SEC could approve spot ether ETFs as early as July 4. So what do you think? Leave your comments below and join the discussion! 🎉🎉