A week after the Securities and Exchange Commission (SEC) approved spot Ethereum (ETH) exchange-traded funds (ETFs), cryptocurrency exchanges have seen substantial outflows of ETH.
According to chart data and observations shared by renowned crypto trading expert Ali Martinez in an X post on June 2, approximately 777,000 ETH – valued at around $3 billion – have left crypto exchanges since the Securities and Exchange Commission approved Ethereum spot ETFs on May 23, 2024.
Over $3 billion worth of Ether (ETH) has been removed from centralized crypto exchanges since the May 23 approval of spot Ether exchange-traded funds (ETFs) in the United States — signaling a potential upcoming supply squeeze.
In fact, the Glassnode chart shared by the analyst demonstrates the huge changes in the total balance of Ethereum across all cryptocurrency exchanges, which has decreased significantly in the days following the approval to around 12.5 million ETH, coinciding with a price increase.
The second-largest asset by market capitalization in the crypto sector traded at $3,821.12 at press time, an increase of 0.75% in the last 24 hours, a decline of 2.43% over the previous seven days, while rising 22.94% on a monthly basis.
As Finbold reported on June 1, this crypto asset has recently shown significant strength against Bitcoin (BTC), the market’s flagship decentralized finance (DeFi) asset, reclaiming a key trendline that’s been incredibly important for over seven years.
ETF effect on Ethereum
As a reminder, the price of Ethereum started increasing on May 20, not long after Bloomberg’s senior ETF analyst Eric Balchunas said he and his colleague James Seyffart thought the odds of a spot Ethereum ETF were 75% instead of 25%.
In the same period, Martinez also noted that Ethereum whales had bought 110,000 ETH, worth about $341 million at the time, during the 24 hours before his X post on May 20, showing a massive increase in interest from the market’s largest holders in anticipation of the spot ETF approval.
Taking everything into account, the massive withdrawal of Ethereum from exchanges signals that crypto traders and investors are securing their holdings in anticipation of price growth and reduced selling pressure on exchanges, which is typically a bullish sign.
Disclaimer: Do not take the content on this site as investment advice, NFA.
TAGS IN THIS STORY
Ali Martinez , Glassnode, Finbold, Crypto, cryptonews, cryptoslate, cryptorank, Cointelegraph
Image Credits: Shutterstock, Pix, Finbold
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