Coin Edition -
- Joe Lubin warns of a potential Ether shortage with the launch of the Spot Ether ETF, raising supply concerns.
- Bloomberg analysts increase Ether ETF approval odds to 75%, signaling a significant shift in market sentiment.
- ETH sees a substantial surge, trading at $3,757 with 27% of the supply staked, highlighting growing market interest.
Ethereum co-founder Joe Lubin has warned of a potential scarcity in the Ether (ETH) supply following the launch of the Spot Ether ETF. While anticipation of the ETF launch grows, Lubin asserted that the “floodgate” of ETH demand might lead to a significant shortage in supply.
Though the community was initially pessimistic about the SEC’s decision on Ether ETFs, reports suggest a potential approval of nine Ether ETF issuers’ applications this week. Meanwhile, Bloomberg’s ETF analysts Eric Balchunas and James Seyffart raised their odds of Ether ETF approval from 25% to 75%.
Update: @JSeyff and I are increasing our odds of spot Ether ETF approval to 75% (up from 25%), hearing chatter this afternoon that SEC could be doing a 180 on this (increasingly political issue), so now everyone scrambling (like us everyone else assumed they'd be denied). See… https://t.co/gcxgYHz3om— Eric Balchunas (@EricBalchunas) May 20, 2024
Reflecting on the positive development in the industry, Lubin highlighted a potential increase in the demand for Ether and Ether ETFs, noting that Spot Bitcoin ETF investors may “likely want to diversify into that second approved ETF.”
Lubin asserted, “There’s going to be a pretty large amount of natural, pent-up pressure to purchase Ether.” However, he added that Ether will be insufficient at the time to satisfy the demand.
Comparing the Bitcoin ETF launch and Bitcoin’s supply at the time with the Ether ETF and ETH supply, Lubin argued that the ETH tokens available will be much fewer than Bitcoin. Providing further insights, Lubin pointed out, “Much of the Ether is put to work in the core protocol, DeFi systems, or in DAOs.” His arguments highlight that a significant portion of ETH supply will be unavailable for ETF consumption.
As of press time, ETH is exchanging hands at $3,757, marking a daily increase of 3.2%. Over the past 7 days, ETH has seen a substantial surge of nearly 30% and 16% surge over the last 30 days. While Ether holds a total supply of 120,128,511 ETH, according to onchain data, 27% of the supply is staked across the Ethereum network.
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