Whether the U.S. Securities and Exchange Commission (SEC) will approve the Ethereum spot ETF this week has become the most concerned issue in the cryptocurrency market. As more and more signs emerge, investor sentiment is gradually being raised:
Bloomberg ETF analysts have raised the odds of Ethereum spot ETF approval (Form 19b-4) from 25% to 75%
The latest list of the Depository Trust and Clearing Corporation (DTCC) shows that the spot Ethereum ETF launched by asset management giants VanEck and Franklin Templeton has been included in the active and pre-issuance list.
Six spot Ethereum ETF applicants have submitted revised 19b-4 documents, including: VanEck, Fidelity, Franklin, Ark Invest, Grayscale, and Invesco Galaxy.
Will Ethereum be in short supply?
In this context, Joseph Lubin, co-founder of Ethereum and founder and CEO of crypto infrastructure company Consensys, also predicted that if it is really passed, Ethereum may face supply shortages, mainly for the following three reasons:
First, Joseph Lubin said:
Institutions that have already allocated BTC through the Bitcoin ETF will likely want to diversify their investments into a second approved ETF, so there will be considerable natural demand for Ethereum.
Next, on-chain data shows that more than 27% of the total supply of Ethereum has been staked on the Ethereum network.
Third, the continued activity of the Ethereum DeFi ecosystem
Lubin believes that the combined effect of these three reasons will further reduce the supply of Ethereum. At the same time, he mentioned that since the market value of Ethereum is lower than that of Bitcoin, this will make the price of Ethereum more sensitive to capital inflows, which means that it may be easier to drive up the price of ETH.
At present, it is still unknown whether the Ethereum spot ETF will be successfully approved by the SEC. But if it comes true, it can be expected that more institutional demand will turn to Ethereum, and it is not ruled out that the rise after Bitcoin's approval will be repeated. However, the dynamic zone also reminds that the recent ETH fluctuations may be quite drastic, so investors are advised to be cautious.
Finally, there are still many things that are not written down, such as specific opportunities and specific decisions. These things are often not something that can be summarized in one article.
