- Spot Ethereum ETFs in the U.S. could attract $4 billion worth of net inflows in their first five months of trading, according to K33 Research
- At current ether prices, this represents a supply absorption of 800,000 ETH to 1.26 million ETH, equivalent to between 0.7% and 1.05% of the circulating supply
- The analysts said they were still not betting against Larry Fink, with the BlackRock CEO’s “Midas touch” on ether creating a setup for relative strength for the asset throughout the summer
A new report from K33 Research suggests that upcoming spot Ethereum exchange-traded funds (ETFs) in the US could see significant inflows, potentially absorbing over 1 million ETH in their first 5 months of trading.
K33 Research Estimates Massive ETF Demand
According to analysts at K33 Research, US spot Ethereum ETFs could attract between $3-4 billion in net inflows during the first 5 months after launch.
At current ETH prices, this represents an absorption of between 800,000-1.26 million ETH, equivalent to 0.7-1.05% of the total circulating supply.
The analysts’ estimates are based on comparisons of market sizing between Bitcoin and Ethereum. They note that 33% of Ether’s circulating supply currently sits in investment vehicles, a figure that has declined since the November 2021 crypto peak, similar to Bitcoin.
Globally, excluding US spot Bitcoin ETFs, existing Ethereum ETPs hold 28% of the assets under management held by their Bitcoin counterparts. The analysts argue this indicates significant latent US investment demand for Ethereum exposure.
Modeling ETF Demand
Applying weights from comparable Bitcoin ETF markets to the $14 billion in net inflows seen by spot Bitcoin ETFs since launch, K33 estimates spot Ethereum ETFs could bring in $3-4 billion in their first 5 months.
This represents a potential absorption of 0.7-1.05% of the total supply, or 800,000-1.26 million ETH.
Conclusion
The upcoming launch of US spot Ethereum ETFs could drive significant demand, potentially absorbing over 1 million ETH from circulating supply in just the first 5 months according to K33 Research. Their analysis suggests strong latent institutional investment interest in Ethereum exposure.
