Crypto Exchanges See $3B Ethereum Release Since ETF Approvals
More than $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 supply glut ahead.
Between May 23 and June 2, Ether exchange volume decreased by around 797,000 – the equivalent of $3.02 billion, according to CryptoQuant data.
There are fewer coins available for sale because lower currency reserves cause investors to keep their own coins instead of selling them immediately.
Glassnode data shared by BTC-ECHO analyst Leon Wideman shows that the percentage of Ether supply held on exchanges is at a record low of just 10.6%.
Ethereum ETFs chart the path to ATH.
Last week, Bloomberg ETF analyst Eric Balchunas suggested that the Ether ETF has a “legitimate chance” to launch in late June.
Some analysts believe that Ether They believe that the November 2021 all-time high of $4,870 could be broken once Ether ETFs begin trading due to increased demand pressure – just like Bitcoin (BTC) in January after spot Bitcoin ETFs began trading.
Related: Ethereum hits new all-time high as Ether ETF countdown nears end
Ether may benefit more from demand pressures than bitcoin, as it doesn't have the same level of “structural selling pressure,” DeFi Report crypto analyst Michael Nadeau said in a May 28 report.
For example, Bitcoin miners are occasionally forced to sell BTC to cover mining costs, while Ethereum validators do not incur the same operating costs as Bitcoin miners.
However, there are also concerns that if the $11 billion fund managed by the Greyscale Ethereum Trust (ETHE) follows the Greyscale Bitcoin Trust (GBTC) it could affect ether's price action – which saw $6.5 billion withdrawn in the first month after approval. .
According to CoinMarketCap, Ether is currently at $3,781, down 0.82% in the last 24 hours and around 23% lower.
Magazine: Ether EFAs Expected in June, CZ Exits Binance France, and Other News: Hodler's Digest, May 26 – June 1
