The United State’s SEC approval of spot Ether ETFs on May 23rd is set to significantly affect the price of Ether in the following months. Some analysts predict that Ether may surpass its previous all-time high of $4,870 from November 2021 when spot Ether ETFs begin trading, as seen previously with Bitcoin ETFs.

When Bitcoin ETFs were approved by the SEC in January, Bitcoin jumped from $42,000 to $73,000 within two weeks.

Recent data revealing that crypto investors are holding onto their Ether indicates an imminent supply squeeze. This supply shortage might raise the price of Ether as investors are eager to stock up on the coin in preparation for a potential increase when Ether ETFs start trading in late June, as forecasted by Bloomberg ETF analyst Eric Balchunas.

According to CryptoQuant data, over $3 billion worth of Ether has been removed from centralized crypto exchanges between May 23 and June 2. Withdrawals of this volume usually implies that investors are moving their coins to self-custody for long-term safekeeping as against immediate selling. Similarly, the percentage of circulating Ether supply held on exchanges is also at its lowest level in years at just 10.6%, Glassnode data shows, signally the confidence of investors in the long term value of the coin.

The possibility of a supply squeeze for Ether is strengthened by the lower operational costs of validating Ethereum transactions compared to Bitcoin mining. Bitcoin miners often sell to cover their high mining expenses, while Ethereum Validators do not shoulder the same financial burden.

Ether is currently trading at $3,764, down 0.59% over the past 24 hours and down around 23% from its all-time high, according to CoinMarketCap.

Although experts believe the run of Ether ETFs will copy their Bitcoin counterparts, in terms of volume they are predicted to capture 10%-20% of Bitcoin ETFs’ inflows in their first few weeks of launch.