Spot Ether ETF could reduce ETH supply by 1.26M in first 5 months

The US Securities & Exchange Commission has approved 19b-4 forms. It could approve S-1 registration forms any time later. This would pave the way for exchange platforms to enable traders and investors to engage with Spot Ether ETF. It is estimated that the approval of the registration form will attract almost $4.8 billion in inflows. An actual number could be higher or lower than the predicted estimate once Ether ETF goes live.

While the ETF will certainly boost the price of the cryptocurrency, there is another factor that the market believes will help Ether gain momentum. It pertains to a reduction in the supply over five months from the time when the Ether ETF goes live. Almost 1.26 million ETH tokens could be moved off the exchange platforms, thereby boosting the price of Ethereum significantly.

It is also expected to bring a new ATH for the token.

Spot Bitcoin ETFs have attracted more than $14 billion in inflows. Spot Ether ETF could fall short of the margin but would be able to attract inflows in the range of $3 billion and $4.8 billion.

Moreover, ETH is expected to outperform BTC following the approval of the Spot Ether ETF. This will largely be in terms of token value growth, not necessarily in terms of token value itself. Ether is aiming to surpass the mark of $10,000 at the earliest. The growth is majorly expected to happen in the second half of 2024.

ETH is listed at $3,809.77 at the time of writing this article. That is a surge of 1.08% in the last 24 hours and a drop of 0.96% in the previous 7 days. Analysts believe it is imperative for ETH to first breach the $4,000 mark and test the resistance at around $4,500 for a while if it aims to reach $10,000.

Short-term predictions are less bullish – center around sustaining a similar mark of around $3,800. ETH is expected to be valued at $3,876.33 in the next 5 days and $3,876.01 in the next 30 days. The monthly growth translates to a surge of around 2.10% amid the volatility of 11.27%.

Conversely, Bitcoin has moved beyond $70,000 to be listed at $71,162.88 at press time. That is a jump of 3.17% in the last 24 hours and 4.18% in the previous 7 days. Short-term predictions are rather more bullish than those for Ether. BTC is expected to be valued at $80,054 in the next 5 days and $90,260 in the next 30 days. The monthly growth, if achieved, would be a jump of 27.23% from the current value.

Overall sentiments for Ether are bullish, but much depends on how long the SEC takes to approve the final S-1 registration forms.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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