ConsenSys CEO: Ethereum spot ETF approval may lead to tight Ethereum supply

Joe Lubin, co-founder of Ethereum and founder and CEO of crypto infrastructure company ConsenSys, said that if an Ethereum spot ETF is approved, the resulting "flood of demand" could lead to a tight supply of Ethereum. Lubin explained that institutions that have already gained investment exposure through the newly launched Bitcoin ETF "will most likely want to diversify their investments into a second approved ETF," and that the natural, pent-up demand to buy Ethereum through ETFs will be considerable, but there will be less supply to meet this demand than when the Bitcoin spot ETF was approved in January this year. "A lot of Ethereum is used in core protocols, DeFi systems, or DAOs," Lubin said. In other words, not only is Ethereum's market value lower than Bitcoin's - making Ethereum's price more sensitive to capital inflows - but a large portion of its supply is unavailable for ETFs. In addition, new activity on Ethereum will cause the network to destroy a large amount of existing supply over time, further limiting supply. (DL News)