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Impact of ETF Inflows on Bitcoin and Ethereum Prices
The introduction of a Bitcoin ETF led to a 2.5x increase in Bitcoin's price with the first 15 billion of inflows. A similar impact is expected for Ethereum due to the limited new supply in ETH in comparison to Bitcoin, where there is net new supply. This price sensitivity analysis is ongoing, but the argument suggests a potentially stronger impact on Ethereum prices. The market is viewed as consisting of people who have to sell and people who can sell.