- Market observers Ethereum surges on talk of ETFs, with 40% of its supply locked.
Since the market is waiting for the final clearance for Ethereum spot-based exchange-traded funds (ETFs), almost 40% of the Ethereum supply is locked.
A breakdown of this locked supply using data from Dune Analytics shows that approximately 33 million ETH, or around 28% of Ethereum’s entire supply, are staked on the network.
Users of proof-of-stake networks, such as Ethereum, are rewarded for locking up their digital assets to maintain the network’s security and functionality.
A further 12% of the supply is restricted to bridges and smart contracts, which are now gaining popularity. For instance, over the previous three years, ETH in the Arbitrum One bridge has continuously increased, according to A.J. Warner is Offchain Labs’ Chief Strategy Officer.
The significant ETH lockup and the upcoming ETF clearance, according to market watchers, will raise ETH prices. The market will be greatly impacted by the approval of spot Ether ETFs, according to Tom Dunleavy, Managing Partner at MV Capital.
Approval of ETF
In the meantime, excitement about the final approvals for an Ethereum ETF in the US is still building.
The ETFs are almost approved, according to Katherine Dowling, Chief Commercial Officer of Bitwise, who stated on July 9 that the Securities and Exchange Commission (SEC) was only resolving a small number of outstanding concerns.
Dowling and James Seyffart, analysts for Bloomberg ETFs, expressed similar thoughts that the products would receive approval throughout the summer.
Although Seyffart was not confident in his ability to estimate the exact launch date, he conjectured that approval might come before the end of this month.
Although there is an 87% likelihood that the items will be published for trading by July 26, cryptocurrency bettors on Polymarket anticipate the products to appear before the end of the month.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
