Cryptocurrency investors are hoarding Ether in anticipation of an ETF and other potential income possibilities
Holdings of Ethereum continue to grow, while Bitcoin long-term investors sell, according to statistics from IntoTheBlock.
Bitcoin and Ethereum are expected to diverge because Ethereum holders are getting ready for new income prospects and the impending ETFs.
Over the last week, Binance saw a 2% decline in the value of Bitcoin and Ethereum.
As Bitcoin's long-term holders sold off their holdings, Ethereum's long-term holders kept buying Ether. The impending ETF and new yield potential in Ether are perhaps the reasons why long-term holders of BTC and ETH are acting differently.
Ethereum holders with a long-term perspective do not sell
There is a noticeable difference in the actions of long-term investors of the two most prominent cryptocurrencies according to data from the crypto intelligence tracker IntoTheBlock. Market capitalization for all cryptocurrencies has rebounded from its recent dip, as Bitcoin investors cash out their holdings while Ethereum holders remain firm.
The hypothesis of possible profits is likely being propelled by the impending Ethereum ETF as well as the yield from staking and re-staking chances.
Bitcoin ETF flows might equal 20% of Ethereum ETF flows, according to experts.
If the Ether Spot ETF flows/volume relative to Spot Bitcoin is 20%, the launch will be considered successful by "normal ETF standards," according to Eric Balchunas, a senior ETF analyst at Bloomberg.
A graphic depicting the relative value of Ether and Bitcoin in various regions helps Balchunas to clarify his position.
Because of the "apples to apples comparison" nature of these financial instruments, Balchunas says that the underwhelming performance of Ether futures plays a significant role in his calculations. A final projection indicates a 20% cut in Bitcoin's volume and transactions.
While Ethereum drew nearer to $3,500 on Binance, Bitcoin maintained a price over $64,000 as of this writing.
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