ETH set to overtake BTC gains after spot ETF launches

“ETH price growth will start to overtake BTC after the launch of an Ethereum (ETH) spot ETF in the US,” crypto research firm K33 Research said in a recent report. “Based on the size of open interest in ETH futures contracts on the Chicago Mercantile Exchange (CME), we estimate that the first five months of an ETH spot ETF could see inflows of around $4 billion.

Currently, open interest in ETH futures on CME is around 35% of BTC futures, suggesting that there is significant institutional demand for ETH in the US. Therefore, the ETF could have 800,000 to 1.2 million ETH deposited, which is about 0.7% to 1.05% of the total supply of ETH, creating a supply shortage in ETH. This could lead to a steep asset price increase, as seen in the case of BTC spot ETFs. Furthermore, the ETH/BTC ratio is likely to end its two-and-a-half-year downtrend and turn upward,” the report said. Meanwhile, the report predicts the launch of an ETH spot ETF could be as early as late June or early July.