The United States is considering allowing a special kind of trading for a digital or “virtual” currency named Ethereum (also called ETH). Because of this, more people choose to keep their Ethereum, causing the total amount of Ethereum being kept, or “staked,” to rise towards a record high. This is happening even though more Ethereum is being made. 

---

• The quantity of staked Ether is almost reaching a record high, helping to control its circulating volume even as overall production increases.
• Competition is heating up to introduce an Ether exchange-traded fund in the US, with trading expected to start before July 26.
• Staking and burning strategies can help sustain Ether’s value in the face of potential inflation.

---

US Braces for Ethereum ETF as Staked Ether Nears Historic Peak

A man named Julio Moreno, who knows a lot about these things, told a website called CoinDesk that the total amount of Ethereum being kept is almost at the highest it’s ever been, with about 33.3 million Ethereum being kept. This equals more than a quarter of all the Ethereum that exists.

As more Ethereum is being made, it’s like there are more and more “virtual” coins. But if there are fewer coins, they could become less valuable over time. However, there are ways to prevent this. One is by “staking,” which is like saving and not using your coins. Another way is by “burning,” which is like destroying a little bit of the coins whenever they’re used.

Julio also explained that Ethereum is increasing slowly. This means that the idea of Ethereum being a super strong type of money might not be true anymore since the total amount of Ethereum is now at its highest point since December 11, 2023. Julio also thinks Ethereum could become as popular as another digital currency called Bitcoin. This is because the amount of Ethereum traded has been almost as much as Bitcoin over the past few weeks.

According to some data, about 12% of all the Ethereum is being used in smart contracts, which are like automatic agreements, or in bridges between blockchains, which are like digital ledgers. If you add this to the amount of Ethereum being kept, almost 40% of all Ethereum is not actively traded.

There’s a race to be the first to launch an Ethereum ETF, which is like a special kind of trading. Some people are betting that this could start before July 26. Recently, two companies, Invesco and Galaxy, said they would charge a 0.25% fee for their proposed Ethereum ETFs, slightly more than VanEck’s 0.20% fee.

But before any trading can start, the SEC, which is like the police for trading, needs to check everything and make sure it’s okay. The companies that want to start trading must also submit forms with all the necessary information. On a website called Kalshi, people are betting that Ethereum will do better than Bitcoin, but they are almost sure that Ethereum will not reach a new high before Bitcoin does.

We invite you, our readers, to keep reading our newsletter updates to stay informed and learn more about digital currencies like Ethereum and Bitcoin!