Permanent Ethereum holders made a significant move yesterday, purchasing 298,000 ETH and demonstrating a substantial spike in demand for the altcoin.
Ethereum has struggled to maintain its position above the $4,000 mark, reflecting the broader market’s lack of momentum. Despite this, recent data suggests a rising demand for the world’s second-largest cryptocurrency.
Permanent Ethereum Holders Make Major Purchases
According to CryptoQuant’s head of research, Julio Moreno, the surge in Ethereum’s demand can be attributed to a significant buying spree by “permanent holders” of the cryptocurrency. On June 13th, these long-term investors bought 298,000 ETH, valued at over $1 billion at current prices. This marks the second-highest daily purchase volume ever recorded for this group, nearly matching the highest volume of 317,000 ETH on September 11, 2023.
Despite Ethereum’s price being down nearly 8% over the past week due to several corrections, it was trading just above $3,500. This latest surge in demand underscores the growing interest and confidence in Ethereum among long-term investors, especially with the anticipated spot Ethereum ETF trading.
Accumulation by Wealthy Investors
Wealthy investors have continued to accumulate Ethereum, as indicated by the increase in the number of addresses holding 10,000 or more ETH over the past three weeks. Investment products based on Ethereum have also seen significant inflows following the initial round of applications approved by the US Securities and Exchange Commission (SEC) in May.
Coinbase’s Largest Ethereum Outflow of the Year
On June 12th, Coinbase experienced its largest Ethereum outflow of the year, with over 336,000 ETH, worth $1.17 billion, being withdrawn. These transactions, ranging from $400 million to $1.1 billion, suggest movements by whales or unidentified institutions in anticipation of a price rise.
Update on Spot Ether ETF
SEC Chair Gary Gensler updated senators during a budget hearing, stating that the final approval of spot Ethereum ETFs is expected to conclude by the end of this summer. The approval process for Ether ETFs is progressing smoothly following the initial batch of approved products. The SEC has already greenlighted the first round of applications, and the final registration requirements, known as S-1 filings, are now being handled at the staff level. Once these filings are approved, the new spot Ethereum ETFs can be listed.
Conclusion
The recent activities of permanent Ethereum holders, coupled with the substantial inflow of investment products and significant outflows from major exchanges, indicate a robust demand and growing confidence in Ethereum. With the anticipated approval of spot Ethereum ETFs, the market sentiment around Ethereum continues to strengthen, setting the stage for potential price increases and broader market engagement.