$3 billion worth of Ethereum exits cryptocurrency exchanges following SEC approval of spot ETFs
In just slightly more than a week since the United States Securities and Exchange Commission (SEC) gave their approval for Ethereum (ETH) exchange-traded funds (ETFs), cryptocurrency exchanges have witnessed a significant outflow of ETH. This demonstrates the impact that regulatory decisions can have on market dynamics.
According to renowned crypto trading expert Ali Martinez, approximately 777,000 ETH, valued at around $3 billion, has left crypto exchanges since the SEC’s approval on May 23, 2024. Martinez shared chart data and observations in a post on June 2.
The chart, sourced from Glassnode, reveals the substantial changes in the total balance of Ethereum on all crypto exchanges. The balance has experienced a significant drop to around 12.5 million ETH following the approval, coinciding with a price increase.
As of the time of writing, Ethereum, the second-largest cryptocurrency by market capitalization, is trading at a price of $3,821.12. This represents 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.
Recently, Ethereum has demonstrated remarkable strength against Bitcoin, reclaiming a crucial trendline that has been of great importance for more than seven years.
It is worth noting that the price of Ethereum began to rise on May 20, shortly after Bloomberg’s senior ETF analyst Eric Balchunas expressed belief that the chances of a spot Ethereum ETF approval were 75%, as opposed to the earlier 25%.
During the same period, Martinez highlighted that Ethereum whales had purchased 110,000 ETH, worth approximately $341 million at the time. This significant increase in interest from the market’s largest holders indicated their anticipation of the spot ETF approval.
The massive withdrawal of Ethereum from exchanges suggests a growing preference among crypto traders and investors to secure their holdings in anticipation of further price growth. This also reduces selling pressure on exchanges, which is typically seen as a bullish sign.
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