PANews reported on May 22 that according to DL News, Joe Lubin, co-founder of Ethereum and founder and CEO of the crypto infrastructure company ConsenSys, stated that if an Ethereum spot ETF is approved, the resulting "demand flood" for Ethereum could lead to a supply shortage. Lubin explained that institutions that have already accessed Bitcoin through the newly launched Bitcoin ETF are "most likely to want to diversify their investments into the second approved ETF." The natural and pent-up demand to purchase Ether through an ETF will be quite large, but compared to the approval of the Bitcoin spot ETF in January this year, the supply available to meet this demand will be less.

In the case of Bitcoin, authorized participants (i.e., companies that buy Bitcoin daily on behalf of the ETF) can simply purchase idle Bitcoin on exchanges or through over-the-counter counterparties. However, on-chain data shows that over 27% of the total Ethereum supply is staked on the Ethereum network. These Ethers are locked in contracts, earning yields for their owners. Lubin said, "A lot of Ethereum is used in core protocols, decentralized financial systems, or DAOs." In other words, not only is Ethereum's market value lower than Bitcoin's—which makes Ether's price more sensitive to capital inflows—but a significant portion of its supply is unavailable for ETF use. Additionally, new activities on Ethereum will lead to the destruction of a large amount of existing Ether supply over time, further limiting supply.