Staked Ethereum Hits 27% of Supply as ETF Hype Grows

Staked Ethereum Hits 27% of Supply as ETF Hype Grows

As the crypto market anticipates the launch of spot Ethereum ETFs in the US, 32.6 million ETH, or over 27% of the total supply, is now securing Ethereum's proof-of-stake network, highlighting the growing interest in Ethereum staking despite the ETFs' inability to stake their holdings due to regulatory constraints. The rise in staked ETH has been steady since the transition from a proof-of-work model.

The SEC's approval for Ether ETFs is slower than expected, with potential listings anticipated within 2 weeks from today. Recent filings by Bitwise and VanEck suggest impending launches. Concerns about centralization and staking risks have been voiced by Ethereum researcher Evan Van Ness, while traditional finance firms like Franklin Templeton are exploring altcoin and staking rewards funds.

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Cboe BZX Files Form 19b-4s For Solana ETF and Trust

Cboe BZX filed 19b-4s forms with the US SEC for proposed Solana exchange-traded funds from VanEck and 21Shares, aiming to launch the first-of-their-kind products. The filings include the 21Shares Core Solana ETF and the VanEck Solana Trust, which seek a rule change approval from the SEC. The form is an application filed with the US SEC to let the agency know of a proposed rule change.

These ETFs are compared to previously approved spot Ethereum and Bitcoin ETFs, with Cboe BZX asserting Solana's resistance to price manipulation. VanEck and 21Shares initiated their filings in late June. The SEC's next step is to acknowledge the 19b-4 filings, starting the decision process, though success is uncertain as the SEC has labeled SOL a security.

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German Gov't Moves $900M and Speeds BTC Selloff

The German government has ramped up its transfer of seized Bitcoin to exchanges and market makers, moving over $900 million worth within just 8 hours on Monday, as tracked by Arkham Intelligence. This follows previous transfers of $28 million to Coinbase, Bitstamp, and an unidentified address. Recent transfers include $200 million to Flow Traders and additional amounts to Coinbase, Bitstamp, and Kraken, indicating potential plans to liquidate the assets.

Germany's Bitcoin holdings have now decreased to $1.34 billion from a peak of $3.5 billion a month ago, largely from funds seized from the creators of the defunct piracy site Movie2k.to, from whom the government confiscated 50,000 BTC in January. In a later update, exchanges send about $163 million back to the German government.

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Bitstamp to Distribute Mt. Gox Bitcoin Payments ASAP

Crypto exchange Bitstamp plans to distribute its share of Bitcoin repayments to Mt. Gox creditors as quickly as possible, despite having up to 60 days to do so after receiving the coins. This move aims to expedite the somewhat unclear timeline of Mt. Gox repayments. Repayments are being managed through five exchanges, each with different distribution deadlines.

Japanese exchanges Bitbank and SBI VC Trade have already distributed their funds promptly, while the remaining exchanges, including Bitstamp, Kraken, and BitGo, will follow. Kraken has up to 90 days, Bitstamp up to 60 days, and BitGo up to 20 days to complete the payouts. With 94,771 BTC ($5.4 billion) still to be distributed, the timing of these repayments remains crucial for the market.

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Data of the day

According to Ki Young Ju from CryptoQuant, Mt. Gox recently moved 47K Bitcoin, but this transfer is not expected to impact the market price. He outlines three scenarios: an internal transfer for security purposes, an OTC deal to avoid market disruption, or the use of a brokerage service, implying the BTC might have been sold without passing through brokers' wallets or exchanges.

Additionally, 1.5K BTC was sent to Bitbank without a notable increase in trading volume, suggesting it is relatively minor. Ju stresses the importance of monitoring exchange flows to determine if Bitbank is acting as a broker. If the third scenario is correct, there are 94K BTC available for sell-side liquidity, though it is unlikely they will be sold without onchain movement.

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More breaking news

• Bybit is listing the token for the record-breaking game Hamster Kombat for pre-market trading in continued support for projects on the Telegram Open Network.
• Nigeria plans to build a blockchain for local needs and data sovereignty, connecting to The National Information and Technology Development Agency.
• ZKM, an interoperability protocol incubated by Metis DAO, has announced plans to launch its Bitcoin Layer 2 solution, GOAT Network, later in Q3.
• Jump Crypto has released a new $1 million bug bounty program, targeting the inaugural release of Firedancer, a third-party Solana validator client.
• Lionel Messi promoted a Solana-based memecoin called WaterCoin (WATER) through his Instagram Stories before it crashed 90%.

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