Alluvial’s Post

Looks like the SEC will be greenlighting spot ETH ETFs next week with trading starting as soon as Tuesday July 23rd. What to expect 👇 The main differences between the #BTC and #ETH spot ETF launches are likely going to be near-term market size, supply dynamics, price sensitivity and the future inclusion of staking rewards. Spot BTC ETF inflows hit ~$60bn AuM in the US this year. At roughly a third of the total market size of BTC, we should expect ETH ETF inflows to reach 30% or ~$20bn+. With roughly 39% of the current ETH supply locked in staking, bridges and DeFi, and another 10% sitting on retail exchanges, ETF-driven ETH inflows could have a significant upwards price impact. The combination of ETH supply lockups and ETF demand could prove to be the tipping point into another market cycle. An important difference between BTC and ETH, is that staking on Ethereum offers a native reward rate, currently ~3.4% ARR, that may be approved and included as part of future filings. Staking-enabled ETFs are already live in Europe and Canada. Check out Galaxy's latest report for more information on the market for ETH ETFs: https://lnkd.in/dvS_vQwx