Welcome to This Week in Crypto! In this edition, we cover the latest developments in the crypto world that you need to know. In the latest ETF news, five spot Ether ETFs have been greenlit by the SEC and should start trading early this week, according to CBOE. Ethereum staking has reached near-record levels with rewards on the rise,with over 33 million Etherm locked up. Additionally, Tangem has unveiled a crypto wallet ring, combining security and convenience to make daily cryptocurrency transactions easier than ever. Stay tuned as we cover these exciting stories.
Spot Ether ETFs to Begin Trading This Week, According to CBOE
The Chicago Board Options Exchange (CBOE) announced that five spot Ethereum exchange-traded funds (ETFs) will begin trading on July 23, pending regulatory approval. These ETFs, which include offerings from 21Shares, Fidelity, Invesco Galaxy, VanEck, and Franklin, were given the green light by the United States Securities and Exchange Commission (SEC) on May 23. However, the final step required approval of each fund issuer’s S-1 registration statements. The ETFs are expected to launch with waived or discounted fees to attract initial investors.
Spot Ethereum ETFs allow investors to buy shares that represent actual holdings of Ethereum, providing a way to invest in the cryptocurrency without owning it directly. This means that when you purchase shares in a spot Ethereum ETF, the fund buys and holds the corresponding amount of Ethereum. Analysts believe the launch of these ETFs could lead to significant demand for Ethereum, potentially causing a supply shortage as more institutions buy Ether to fill their ETF reserves. According to data from CryptoQuant, the amount of Ethereum available for purchase on exchanges is already at multi-year lows, indicating that this increased demand could further tighten the supply.
Ethereum Staking Nears All-Time High
Ethereum staking has reached near all-time highs, with approximately 33.2 million Ethereum (worth about $114 billion) currently locked up as the network’s reward rate increases to 2.6%. This rise comes just days before spot Ethereum ETFs are expected to begin trading in the United States. The increase in staking rewards, which saw a jump from 2.48% last month, has likely contributed to the surge in staked ETH, now representing about 28% of the total Ethereum supply, according to data from Coinbase.
Staking Ethereum involves locking up ETH for a set period to secure the proof-of-stake network, earning rewards in return. This process has seen significant growth, breaking the 30 million ETH mark in February and reaching an all-time high of over 33.4 million ETH on July 12, according to Dune’s on-chain data. However, the concentration of staked ETH, particularly with platforms like Lido holding 29% of the total staked ETH, along with contributions from Coinbase and others, has raised concerns about centralization within the network.
New Crypto Wallet Ring Encourages Daily Use and Self-Custody
Tangem has introduced a new wearable cold wallet designed as a ring to promote daily cryptocurrency transactions and boost self-custody adoption. Announced on July 17, the Tangem Ring combines the security of hardware wallets with the convenience of a wearable device. The ring is intended to encourage people to use cryptocurrency for everyday transactions rather than storing it away. According to Andrey Lazutkin, Tangem’s CTO, the goal is to make cryptocurrency a part of daily life, similar to how people use traditional payment methods.
The ring, like its card-based counterpart, is secured by an access code and features an EAL6+ secure element, making it highly resistant to hacking. Even if the ring is stolen, access to the cryptocurrency remains blocked. The ring’s wearable nature also adds a layer of security, as it is more difficult to steal from the wearer’s finger. The ring will be accessible in regions where Tangem Pay operates, including Europe and the United Kingdom. This innovation follows a broader trend in the crypto industry towards self-custody and daily use of cryptocurrencies.
