TL; DR
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Four companies that will soon offer spot Ethereum ETFs in the US changed their filings yesterday; meanwhile, more than 27% of ETH’s total supply is now deployed.
Full story
We couldn’t decide which news story to write about for this final article, so here are two pieces of interesting news mixed together.
News 1: Four companies that will soon be offering spot Ethereum ETFs in the US changed their filings yesterday, suggesting that the final approval process is coming soon (i.e. people will soon be able to actually buy/sell spot ETH ETFs).
News 2: 32.6 million ETH – which is more than 27% of the total supply – is now being staked, according to the latest data from Coinbase.
On the one hand, the more ETH staked, the better (in general).
By staking ETH (i.e. tying it to earn an annual return), investors are saying two things:
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I care about the security of the Ethereum network and I am putting my money behind my word by staking ETH to increase the number of validators on the network.
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I want that high interest yield baaaby! And I don’t touch my stock until it grows and grows.
On the other hand, at a lot of effort ETH could be lead to more centralized ownership of the network.
(Which leads to more voting power and more ability to manipulate prices).
This is how we link the first two news items together:
When spot Ethereum ETFs are finally approved in the US, asset managers will not be able to stake their ETH due to regulatory restrictions.
So even if billions of dollars worth of Ethereum are bought by the few companies approved to offer ETH ETFs, that 27% number won’t go higher – chances are it will fall.
In short, good news everywhere.
It could be a big week in crypto!