Approximately 40% of Ethereum supply is locked as the market awaits final approval for ETH spot-based exchange-traded funds (ETFs).
A breakdown of this “locked supply” reveals that over 33 million ETH is staked on the network, representing around 28% of Ethereum’s total supply, as per Dune Analytics data.
Proof-of-stake networks like Ethereum require users to stake 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 significant adoption recently. For instance, A.J. Warner, Chief Strategy Officer at Offchain Labs, highlighted that ETH in the Arbitrum One bridge has consistently increased over the past three years.
Market observers predict that this substantial ETH lockup and the impending ETF approval will elevate ETH prices. Tom Dunleavy, Managing Partner at MV Capital, emphasized that the approval of spot Ether ETFs will have a significant impact on the market. He stated:
“The spot ETH ETF flows are going to rapidly move this market.”
ETF Approval
Anticipation is mounting for the final approvals of a spot Ethereum ETF in the United States.
On July 9, Bitwise’s Chief Commercial Officer, Katherine Dowling, noted that the ETFs are on the verge of approval, mentioning the Securities and Exchange Commission (SEC) is addressing only a few remaining issues.
Dowling suggested that the products could be approved during the summer, a sentiment shared by Bloomberg ETF analyst James Seyffart.
Seyffart speculated that approval might come by the end of the month, despite his reservations about predicting the exact launch date. He mentioned:
“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 enthusiasts on Polymarket anticipate the products to launch before the end of the month, with an 87% chance of trading by July 26.
