TL;DR
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Four companies that will soon be offering spot Ethereum ETFs in the US, amended their filings yesterday; meanwhile over 27% of the total supply of ETH is now being staked.
Full Story
We couldn’t choose which piece of news to write about for this last article, so here’s two pieces of interesting news mish-mashed together.
News 1: Four companies that will soon be offering spot Ethereum ETFs in the US, amended their filings yesterday, suggesting 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 over 27% of the total supply – is now being staked according to the latest data from Coinbase.
On one hand, the more staked ETH, the better (in general).
By staking ETH (i.e. locking it up to get an annual % return), investors are saying two things:
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I care about the security of the Ethereum network and I’m putting my money where my mouth is by staking ETH to sure up the number of validators on the network.
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I want that high interest return baaaby! And I ain’t touching my stash until it grows and grows.
On the other hand, too much staked ETH could lead to a more centralized ownership of the network.
(Which leads to more voting power, and more ability to manipulate prices).
Now, here’s how we’re tying those first two pieces of news together:
When the spot Ethereum ETFs are finally approved in the US, due to a regulatory constraint, the asset managers won’t be able to stake their ETH.
So even if billions of dollars worth of Ethereum is purchased by the few companies that are approved to offer ETH ETFs, that 27% number won’t get any higher – chances are it will drop.
Overall, good news all ‘round.
Could be a big week in crypto!
