Ethereum
Ethereum Prepares for Spot ETF Surge as 40% of Supply Remains Locked Up
About 40% of Ethereum The offering is stalled as the market anticipates final approval of exchange-traded funds (ETFs) based on spot ETH.
An analysis of this “locked supply” shows that over 33 million ETH are staked on the network, which represents about 28% of Ethereum’s total supply, according to Dune Analytics. data.
Proof-of-stake networks like Ethereum require users to “lock up” their digital assets to support its security and operations, and in exchange, they earn rewards.
Ethereum Locked Supply (Source: CoinMetrics)
Additionally, 12% of the supply is locked in smart contracts and bridges, which are seeing strong adoption in recent times. For example, AJ Warner, Chief Strategy Officer at Offchain Labs, note that ETH in the Arbitrum One bridge has been increasing steadily over the past three years.
Market observers believe that this substantial ETH lockup and the impending ETF approval will boost ETH prices. Tom Dunleavy, Managing Partner at MV Capital, noted that the approval of Ether spot ETFs will have a significant impact on the market. declared:
“ETH ETF spot flows will quickly move this market.”
ETF Approval
Meanwhile, anticipation continues to build around final approvals for a spot Ethereum ETF in the United States.
On July 9, Katherine Dowling, Bitwise’s Chief Commercial Officer, said ETFs are on the verge of approval, with the Securities and Exchange Commission (SEC) only addressing a few remaining issues.
Dowling suggested the products could be approved over the summer, a sentiment echoed by Bloomberg ETF analyst James Seyffart.
Seyffart speculated that approval could come by the end of the month, although he had little confidence in the exact launch date forecast. said:
“At this point, I don’t have much confidence in these launch date predictions. There is no deadline and the SEC Fin Corp is taking its time (I don’t blame them). But these changes have been very minimal and [i don’t know] why ETFs wouldn’t be ready to launch within a few weeks.
Meanwhile, crypto punters on Polymarket to wait for The products will be launched before the end of the month, with an 87% chance of being listed on the stock exchange by July 26.