To The Moon

If you are trading or following Ethereum ETFs, there have been talks about staked Ether close to all-time high as ETF approval get closer. The latest anticipation is for ether ETFs to be approved by July 26.

While the supply of ether is rising, the amount that is staked is close to all-time highs, CryptoQuant data shows. Polymarket bettors are assigning a 90% chance to an ether exchange-traded fund being approved in the U.S. by July 26, but there are still several steps that must take place before one can trade.

Ether (ETH) exchange-traded fund (ETF) Volume Traded To Watch

As an ether (ETH) exchange-traded fund (ETF) moves closer to reality in the U.S., the amount of ether staked is nearing a record high, keeping the circulating volume in check even though the total amount of ETH is growing again.

According to CryptoQuant, the total number of staked ETH has continued to increase and sits near its all-time high as it stands at 33.3 million ETH or 27.7% of the total supply.

What does this mean is that the increasing supply of the second-largest cryptocurrency is a sign it has returned to being an inflationary asset, undermining its capability to act as a store of value over time.

Staking Ethereum For Rewards and Counter Store Of Value Over Time

In order to counter the ethereum as an inflationary asset, there are many ways, but one way which I have been doing is staking, which locks ether for a fixed period of time, and burning – or permanently removing from circulation – a portion of the transaction fees paid by users.

Spot trading volume data shows ether could be as liquid as Bitcoin (BTC), with ETH spot trading volume being 80%-90% of that of bitcoin in the last few weeks. As seen in the daily transaction on the ethereum network, it is currently at a consolidation state, this happen the same when we are looking at the Bitcoin ETF approval.

Ethereum On-Chain Volume Consolidating Too

Data from CoinMetrics, meanwhile, shows that around 12% of ether's supply is being used in smart contracts or bridges that connect between blockchains. Between that amount and the tokens that are staked, roughly 40% of the cryptocurrency is "locked" and not being actively traded.

So we might see the volume increased significantly once we have the Ether ETFs approval coming by 26 July. So I think it is a period of two weeks we should be looking out for.

Then how do we trade the crypto stocks then?

Coinbase Set To Gain From Ether ETF Approved. Here’s Why?

$Coinbase Global, Inc.(COIN)$ , one of the largest crypto companies in the world, operates a centralized exchange, wallet service and a layer-2 called Base. Coinbase's portfolio is worth nearly $80 billion. The wallet is composed almost entirely of Ethereum (ETH) and Bitcoin (BTC). The firm holds over 900,000 BTC, currently worth over $55 billion. It also holds over 6.6 million ETH worth roughly $20 billion.

While Coinbase operates as a crypto custodian, Grayscale is a crypto asset manager. It creates a handful of funds and ETFs that allow investors to access crypto products.

Coinbase has the largest ETH holding on the list. Its $20 billion of ETH is more than 5% of the total supply. The four firms hold a combined 15.5 million ETH, which is roughly 12.7% of the supply.

Summary

While we looked forward to the Ethereum ETFs approval, there are also chances that investors might start their interest again on the Bitcoin ETFs like $iShares Bitcoin Trust(IBIT)$ . This is because if ethereum ETFs approval is going to push a rally on the crypto.

Then not only crypto stocks would benefit, the Bitcoin ETFs would as well.

Appreciate if you could share your thoughts in the comment section whether you think ethereum ETF approval would help start a small rally on the crypto stocks and its related Bitcoin ETFs.

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.