Ethereum Supply Locked as Market Awaits ETF Approval
The Ethereum market is abuzz with excitement as approximately 40% of the supply is currently locked up in anticipation of the final approval for ETH spot-based exchange-traded funds (ETFs). This locked supply includes over 33 million ETH staked on the network, representing around 28% of Ethereum’s total supply.
Proof-of-stake networks like Ethereum require users to lock up their digital assets to support security and operations, earning rewards in return. Additionally, 12% of the supply is locked in smart contracts and bridges, which are experiencing high adoption rates.
Market observers believe that this substantial ETH lockup, combined with the impending ETF approval, will have a positive impact on ETH prices. Tom Dunleavy, Managing Partner at MV Capital, emphasized the significance of spot Ether ETFs, stating that they will “rapidly move this market.”
Anticipation is growing for the final approvals of a spot Ethereum ETF in the United States. Bitwise’s Chief Commercial Officer, Katherine Dowling, mentioned that the ETFs are nearing approval, with the Securities and Exchange Commission (SEC) addressing only a few remaining issues. Bloomberg ETF analyst James Seyffart speculated that approval could come by the end of the month, despite uncertainties about the exact launch date.
Crypto bettors on Polymarket are optimistic, giving an 87% chance of the products being listed for trading by July 26. With the market eagerly awaiting the ETF approval, all eyes are on Ethereum as it continues to make waves in the cryptocurrency world.
