24/7 Cryptocurrency News

ETH Supply Can Drop By 1.26 Million In Five Months of Spot Ethereum ETF Launch

Given the strong open interest for Ethereum futures on CME, K33 Research forecasts that a spot Ethereum ETF could attract substantial institutional demand. ETH price likely to outperform Bitcoin.
Published by
ETH Supply Can Drop By 1.26 Million In Five Months of Spot Ethereum ETF Launch

Highlights

  • Comparing the IO for ETH and BTC futures on CME, K33 predicts strong institutional demand for Ethereum ETF.
  • It expects $4.8 billion in inflows upon the launch of the spot Ethereum ETFs.
  • ETH is likely to outperform BTC following the launch of spot Ethereum ETF.

All eyes are currently on the SEC’s decision regarding the approval of spot Ethereum ETF S-1 registrations, which could act as a catalyst for a broader market rally. According to a recent report from K33 Research, Ethereum might experience a supply shock, with nearly 1.26 million ETH potentially moving off exchanges within just five months of the ETF launch. This shift could significantly boost the Ether (ETH) price, potentially leading to a new all-time high.

Spot Ethereum ETFs to See $4 Billion in Inflows

As per the K33 Research, the spot Ethereum ETFs could see a staggering $4 billion in inflows within just the first five months of launch. K33 Research based its forecast by comparing the assets under management (AUM) in existing Ethereum (ETH)-based exchange-traded products worldwide to similar Bitcoin (BTC) products. They also analyzed the open interest (OI) in futures contracts on the Chicago Mercantile Exchange (CME), a key marketplace for institutional investors.

As of now, Ether’s open interest (OI) on the CME exchange stands at 23% of the size of Bitcoin futures. However, ever since the ETH futures started trading on CME back in 2021, they have grabbed a 35% share of the BTC futures, indicating that there’s been a strong institutional demand for ETH.

Courtesy: K33 Research

While comparing these ratios along with the $14 billion in inflows for the spot Bitcoin ETFs, K33 Research predicts that the spot Ether ETFs could see inflows anywhere between $3 billion and $4.8 billion within the first five months of launch.

As per the current ETH price of $3,800, this could mean that 800,000 to 1.26 million of ETH accumulation will happen through the ETFs. This is nearly 0.7%-1.05% of the total circulating ETH supply.

ETH to Outperform Bitcoin

Soon after the spot Bitcoin ETF approval, the BTC price rallied by 60% to record highs. As per K33 Research, if the Ethereum ETFs go live for trading, Ethereum will start outperforming BTC, after nearly two years of underperformance.

More importantly, in its research report, it noted that the removal of the staking feature from ETFs won’t negatively impact the inflows into the investment product. K33 noted that in Canadian ETH ETFs, 99% of assets under management are housed in funds that do not involve staking, while in European products, the figure stands at 98%.

Advertisement

Share
Bhushan Akolkar

Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

Roger Ver, ‘Bitcoin Jesus,’ Settles $48M Tax Fraud Case with U.S. DOJ

Roger Ver, widely known in the crypto world as “Bitcoin Jesus,” has reached a settlement…

October 10, 2025
  • 24/7 Cryptocurrency News

Senate Democrats’ New DeFi Proposal Stalls Crypto Market Structure Talks

Senate Democrats have proposed new regulations for decentralized finance (DeFi) that they want to include…

October 10, 2025
  • 24/7 Cryptocurrency News

Zcash (ZEC) Extends Rally Above $200 as Privacy Narrative Gains Reflexive Momentum

Zcash (ZEC) now trades above $200. The rally reflects a reflexive surge in investor belief,…

October 10, 2025
  • 24/7 Cryptocurrency News

Pump.fun Rival Zora Rallies Over 30% Following Robinhood Listing

Zora, Coinbase-based creator economy platform, has been listed on Robinhood. This also highlights its increased…

October 9, 2025
  • 24/7 Cryptocurrency News

Peter Brandt Lists XRP Among Shorts Amid Crypto Market Crash

Veteran trader Peter Brandt has doubled down on his bearish XRP prediction. This time, he…

October 9, 2025
  • 24/7 Cryptocurrency News

Fed’s John Williams Backs More Rate Cuts This Year Amid Labor Market Concerns

New York Fed President John Williams has shown his support for additional Fed rate cuts…

October 9, 2025