$ETH Ethereum ETFs Approved: Will Demand Surge? ๐
Ethereum is set to see a supply crunch as newly approved spot Ethereum exchange-traded funds (ETFs) hit the market. With Ethereum's supply on centralized exchanges at an eight-year low, only 12.78 million ETH (about 11% of the total supply) is available. ๐
Ethereum Demand Shock Expected ๐ฅ
Investors are pulling their ETH from exchanges, signaling bullish sentiment and expecting price growth. The SEC's approval of several Ethereum ETFs could further boost demand, similar to what was seen with Bitcoin ETFs.
Mara Schmiedt, CEO of Alluvial, notes the significant institutional interest in spot Bitcoin ETFs, now holding 800,000 BTC. She predicts Ethereum could see similar demand, leading to a potential supply and demand tipping point. โWhat happens if $20 billion is taken out of the market? It could be a tipping point,โ Schmiedt said.
Surge in Institutional Activity ๐ฆ
Ethereum is already experiencing increased institutional activity. Blockchain analytics platform IntoTheBlock reported a two-year high in on-chain trading volume of $15.98 billion, driven by crypto whales. Transactions exceeding $100,000 accounted for 90% of this volume.
IntoTheBlock highlighted that Ethereum ETF approval is a significant milestone in cryptocurrency acceptance. This is likely to increase ETH whalesโ activity, leading to greater market movements. ๐
Stay tuned for more crypto insights! ๐
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