All eyes are on spot Ethereum ETFs. SEC’s surprising turn of events last month has prompted a surge in addresses holding large amounts of ETH during the period.
Such a trend could potentially hint at a much-needed revival for the world’s largest altcoin, which has been struggling to surpass the $4,000 resistance level.
Wealthy Investors Accumulate ETH
There has been a 3% rise in the number of Ethereum addresses holding 10,000 or more ETH over the last three weeks. This metric is seen as an indicator of rising institutional investment and accumulation by Ethereum whales and high-net-worth individuals.
Popular crypto analyst Ali Martinez tweeted ,
“The number of #Ethereum addresses holding 10,000+ $ETH has increased by 3% in the last three weeks, signaling an important spike in buying pressure!”
As such, a spike in addresses with large ETH holdings suggests increasing buying pressure and demand from deep-pocketed investors. This could potentially be an upcoming bull run for Ethereum as whale accumulating supply is often a precursor to an uptick in asset prices.
This comes a month after the US Securities and Exchange Commission (SEC) reached a landmark decision to approve spot Ethereum ETF. The financial watchdog granted permission for a total of eight separate ETF products tracking Ethereum proposed by Grayscale, VanEck, ARK Invest, Franklin Templeton, Fidelity, BlackRock, 21Shares, and Invesco Galaxy.
These listings will enable traditional investors to gain exposure to the cryptocurrency through regulated investment vehicles and are also expected to unlock new capital inflow while simultaneously boosting its mainstream accessibility and liquidity. Hence, whales are bullish on the development as evidenced by the resulting accumulating activity.
Ethereum Scarcer Than Bitcoin on Exchanges
Further validating this trend is Glassnode data , which shows that centralized exchanges are experiencing a supply crunch for both Bitcoin and Ethereum. Only 11.73% of Bitcoin’s total supply and an even lower 10.56% of Ethereum’s supply remain on major exchanges.
This indicates that investors are withdrawing and holding their cryptocurrencies off exchanges, further signaling an accumulation trend.
When supply on exchanges dries up, it can create upward price pressure as the remaining liquidity gets absorbed by buyers. Interestingly, Ethereum appears to be even scarcer than Bitcoin on exchanges currently.
