CryptoQuant researcher Burak Kecmece published a report stating that Ethereum Spot ETFs were approved on May 24, 2024. Following this event, unknown individuals or institutions withdrew more than 800,000 Ethereum (ETH) worth about $3 billion from exchanges over 8 days. The analyst has not yet identified these major holders.
The expert noted that a similar situation was observed after the approval of the Bitcoin Spot ETF. However, the exact buyers of over $3 billion worth of ETH remain unknown. Nevertheless, the researcher suggested that these could be large holders expecting the price of Ether to rise in the near future.
In his opinion, the significant outflow of funds over the 8-day period could be attributed to institutional entities preparing for the launch of spot ETFs. They likely acquired assets in advance to meet the demand of their investors with new products.
The expert emphasized that this is just a hypothesis, but the withdrawal of more than 800,000 Ethereum from centralized exchanges in just over a week should have a positive impact on the price of ETH in the mid-term. Such a movement indicates growing demand and possible investor confidence in long-term holding of the asset outside of exchanges.
As of June 3, 2024, the price of Ethereum is $3,820. This figure has increased by 27.77% over the past 30 days and by 67.5% since the beginning of the year. The market capitalization of the asset has reached $459.04 billion. The cryptocurrency is still trading 22% below its all-time high. The daily trading volume of ETH is $11.64 billion, and the weekly volume is $76.02 billion. ETH's market share is 17.9%.
