Approximately 40% of the ethereum supply is locked as the market anticipates final approval of exchange-traded funds (ETFs) based on the eth spot market.
A breakdown of this “locked supply” shows that more than 33 million eth is staked on the network, representing around 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 their security and operations, and in return, they earn rewards.
Furthermore, 12% of the supply is locked in smart contracts and bridges, which are seeing huge adoption lately. For example, AJ Warner, Chief Strategy Officer at Offchain Labs, x.com/ajwarner90/status/1811329454880276522″>noted that eth on the Arbitrum One bridge has been steadily increasing 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 Ether spot ETF approval will have a significant impact on the market. x.com/dunleavy89/status/1810734914821628043?t=nObWHAMjbWJTABxHb9WvDQ&s=19″>fixed:
“eth spot ETF flows will move this market quickly.”
ETF Approval
Meanwhile, anticipation continues to grow around the final approvals for an ethereum spot ETF in the United States.
On July 9, Bitwise chief commercial officer Katherine Dowling said that ETFs are close to being approved, noting that the Securities and Exchange Commission (SEC) was 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 despite his low confidence in predictions of the exact launch date. x.com/JSeyff/status/1808580691396825113?t=tAWOrnPROPsyr46YRQGNWw&s=19″>saying:
“At this point, I have little confidence in those predictions about the launch date. There is no timeline and the SEC’s corporate finance department is taking its time (I don’t blame them). But these changes were very minimal and (I don’t know) why the ETFs wouldn’t be ready to go to market in a couple of weeks.”
Meanwhile, crypto punters on Polymarket ethereum-etf-begins-trading-by-july-26?tid=1720681052597″>wait The products will be launched before the end of the month, with an 87% chance of being ready for sale by July 26.
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(tags to translate)ETF
