{"id":609223,"date":"2024-05-22T06:50:03","date_gmt":"2024-05-22T06:50:03","guid":{"rendered":"https:\/\/ktsl888.com\/?p=609223"},"modified":"2024-05-22T06:45:08","modified_gmt":"2024-05-22T06:45:08","slug":"ethereum-co-founder-supply-crunch-etfs-price-target","status":"publish","type":"post","link":"https:\/\/ktsl888.com\/news\/ethereum-co-founder-supply-crunch-etfs-price-target\/","title":{"rendered":"Ethereum Co-Founder Predicts Supply Crunch From ETFs, This Is The Price Target"},"content":{"rendered":"
Joseph Lubin, co-founder of Ethereum and CEO of blockchain technology firm Consensys, has expressed that the potential approval of spot Ethereum ETFs<\/a> by the US Securities and Exchange Commission (SEC) could lead to significant supply constraints for Ether. This development is anticipated to be a “watershed” moment for Ethereum.<\/p>\n In an exclusive interview<\/a> with DL News, Lubin predicted that the approval of spot Ethereum ETFs will unlock substantial institutional demand. Given that many institutions have begun their crypto investments with spot Bitcoin ETFs, Ethereum is naturally the next substantial asset for diversification.<\/p>\n “There\u2019s going to be a pretty large amount of natural, pent-up pressure to purchase Ether” through these ETFs, Lubin commented. However, he also noted that the situation for Ethereum differs significantly from that of Bitcoin because of the underlying supply dynamics.<\/p>\n A major factor distinguishing Ethereum from Bitcoin in the context of ETF creation is the availability of the assets. On-chain data indicates that more than 27% of all Ether is staked across various protocols on the Ethereum network. These funds are locked in contracts and are contributing to the network’s security and operations, thus they are not readily available for market trading.<\/p>\n “Much of the Ether is put to work in the core protocol, DeFi systems, or in DAOs<\/a>,” Lubin explained. This structural difference means that there is less Ether available for ETF providers to purchase and allocate to new ETF shares.<\/p>\n