Approximately
40%
of

Ethereum
supply
is
locked
as
the
market
anticipates
the
final
approval
for
ETH
spot-based
exchange-traded
funds
(ETFs).

A
breakdown
of
this
“locked
supply”
shows
that
over
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
its
security
and
operations,
and
in
return,
they
earn
rewards.

 

Additionally,
12%
of
the
supply
is
locked
in
smart
contracts
and
bridges,
which
are
seeing
high
adoption
lately.
For
example,
A.J.
Warner,
Chief
Strategy
Officer
at
Offchain
Labs,

noted
that
ETH
in
the
Arbitrum
One
bridge
has
consistently
increased
over
the
past
three
years.

Market
observers
believe
this
substantial
ETH
lockup
and
the
impending
ETF
approval
will
boost
ETH
prices.
Tom
Dunleavy,
Managing
Partner
at
MV
Capital,
pointed
out
that
the
approval
of
spot
Ether
ETFs
will
significantly
impact
the
market.
He

stated:

“The
spot
ETH
ETF
flows
are
going
to
rapidly
move
this
market.”

ETF
approval

Meanwhile,
anticipation
continues
to
grow
surrounding
the
final
approvals
for
a
spot
Ethereum
ETF
in
the
United
States.

On
July
9,
Bitwise’s
Chief
Commercial
Officer,
Katherine
Dowling,

said
the
ETFs
are
nearing
approval,
pointing
out
that
the
Securities
and
Exchange
Commission
(SEC)
was
addressing
only
a
few
remaining
issues.

Dowling
suggested
the
products
might
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
exact
launch
date
predictions.
He

 

said:

“I
have
fairly
low
confidence
in
those
launch
date
predictions
at
this
point.
There’s
no
deadline
&
SEC’s
Corp
Fin
is
taking
its
time
here
(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
within
a
couple
of
weeks.”

Meanwhile,
crypto
bettors
on
Polymarket

expect
the
products
to
launch
before
the
end
of
the
month,
with
an
87%
chance
of
being
listed
for
trading
by
July
26.

Mentioned
in
this
article

Go to Source
Author: Oluwapelumi Adejumo

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