Ether Price Poised for Supply 'Shock' as ETFs May Attract $4B Inflows in Five Months, K33 Research Says

U.S. spot ETFs could accumulate around 1 million ETH in five months based on the size of similar ETH products globally and CME futures open interest relative to bitcoin, K33 Research saidare soon arriving in the U.S. and could attract $4 billion of inflows in the first five months, crypto analytics firm K33 Research said in a

Ether's OI on CME currently stands at 23% of the size of BTC futures, but it has seen an average share of 35% of BTC futures since ETH futuresEther ETPs and CME futures open interest compared to bitcoin products Based on current prices, this would equal 800,000 to 1.26 million of ETH accumulated in the ETFs, or roughly 0.7%-1.05% of the total supply of tokens, creating a supply crunch for the asset, according to the report. Unlike futures-based products, the issuers of spot ETFs will need to buy tokens in the spot market as investors buy ETF shares.

Bitcoin, after an initial correction in late January, rallied nearly 60% to record highs following the introduction of U.S. spot ETFs. K33 analysts predicted that with the start of ether ETFs, the price of ETH would start outperforming BTC after almost two and a half years of the ETH-BTC pair's downtrend.

Source: News Formal (newsformal.com)

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