ETF Inflows Will Affect Ethereum Price in Near Term: Report

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According to Kaiko, Ethereum ETFs could potentially lead to a decrease in demand for ETH, as some investors may sell their shares and switch to the newly launched spot ETFs. As spot Ether ETFs begin trading, there is potential for the price of Ether to be impacted by investor demand.

This is because in late 2020, the launch of futures-based ETH ETFs was met with low demand. All eyes are now on the newly launched spot ETFs, with hopes that they will quickly accumulate assets.

Although it may take several months to fully understand the demand for these ETFs, the price of Ether could be affected by the number of inflows in the first few days.

On July 22, several spot Ether ETFs received final approval and are set to begin trading on July 23. Kaiko’s head of indices, Will Cai, believes that one of the most significant effects on price will come from potential outflows from Grayscale’s Ethereum Trust (ETHE).