$3 billion worth of Ethereum departs from cryptocurrency exchanges following SEC approval of spot ETFs
In a little over a week since the approval of spot Ethereum (ETH) exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC), cryptocurrency exchanges have experienced a significant outflow of ETH. This demonstrates the impact of regulatory decisions on market dynamics.
Renowned crypto trading expert Ali Martinez shared data and observations in an X post on June 2, revealing that approximately 777,000 ETH, valued at around $3 billion, has left crypto exchanges since the SEC’s approval on May 23, 2024.
The chart shared by Martinez, sourced from Glassnode, illustrates the substantial decrease in the total balance of Ethereum on all crypto exchanges following the approval, with the balance dropping to around 12.5 million ETH. This decrease coincided with a price increase.
As of now, Ethereum, the second-largest asset in the crypto sector by market capitalization, is trading at a price of $3,821.12. It has seen a 0.75% increase in the last 24 hours, a 2.43% decline over the previous seven days, and a 22.94% increase on its monthly chart.
Furthermore, Ethereum has displayed significant strength against Bitcoin (BTC), the flagship decentralized finance (DeFi) asset. It has reclaimed a key trendline that has been crucial for over seven years.
The price of Ethereum began to rise on May 20, shortly after Bloomberg’s senior ETF analyst Eric Balchunas expressed his belief that the chances of a spot Ethereum ETF approval were 75%, compared to the earlier estimate of 25%.
During the same period, Martinez noted that Ethereum whales had purchased 110,000 ETH, worth approximately $341 million, in the 24 hours leading up to his post on May 20. This indicates a significant increase in interest from the market’s largest holders in anticipation of the spot ETF approval.
Overall, the significant withdrawal of Ethereum from exchanges suggests that crypto traders and investors prefer to secure their holdings in anticipation of further price growth. This also reduces selling pressure on exchanges, which is typically considered a bullish sign.
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