Joseph Lubin: If the Ethereum spot ETF passes, it may face insufficient supply, driving up currency prices

Whether the U.S. Securities and Exchange Commission (SEC) will approve an Ethereum spot ETF this week has become the most concerning issue in the cryptocurrency market. As more and more signs emerge, investor sentiment is gradually lifted:

• Bloomberg ETF analysts have raised the probability of Ethereum spot ETF approval (Form 19b-4) from 25% increased to 75%

• The latest list of the Depository and Clearing Corporation (DTCC) shows that the spot Ethereum ETF launched by asset management giants VanEck and Franklin Templeton has been included in the list of active and Pre-release 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 passed, Ethereum may face supply shortage, mainly for the following three reasons:

• First of all, Joseph Lubin said: Institutions that have allocated BTC through Bitcoin ETFs are likely to want to diversify their investments into a second approved ETF. Therefore, there will be a considerable Natural demand flocks to Ethereum.

• Next, on-chain data shows that more than 27% of the total supply of Ethereum has been pledged 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 lead to Ethereum supply decreases. 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 responsive to capital inflows, which means that it may be easier to boost 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 shift to Ethereum, and a repeat of the gains seen after Bitcoin passed cannot be ruled out. However, we would also like to remind you that ETH fluctuations may be quite severe in the near future, so investors are advised to be cautious.

The above is the detailed content of Joseph Lubin: If the Ethereum spot ETF passes, it may face insufficient supply, driving up currency prices. For more information, please follow other related articles on the PHP Chinese website!