Institutional Interest in Ethereum (ETH) Is Increasing! This Could Start a Mega Rally!
The balance of Ethereum (ETH) on centralized exchanges has been falling rapidly since the United States Securities and Exchange Commission (#SEC ) approved spot Ethereum ETF products. Centralized trading platforms are considered the primary way through which most investors can access cryptocurrencies, including Ethereum.
In his statements on X, popular cryptocurrency analyst Ali Martinez stated that since spot Ethereum ETF products were approved in the USA, approximately 777,000 ETH worth approximately $ 3 billion have been withdrawn from cryptocurrency exchanges. Although #ETH ETF products have not yet started to be officially traded on exchanges, the continuation of this trend may play an important role in shaping the price movement of ETH in the long term.
One of the interesting trends in the chart shared by the analyst is that the current Ethereum balance on exchanges is the lowest the token has recorded since at least December 11, 2023. Considering the large rate of institutional investment in Bitcoin through spot ETF products, Ethereum may soon be subject to a supply shock.
If the Ethereum spot #ETF experiences accumulation similar to Bitcoin, it could help the Ethereum price skyrocket forward in a very short time. The same experience was noted for Bitcoin, with institutional capital inflows driving the cryptocurrency's price to a new all-time high (ATH) above $73,000 in March.
Many cryptocurrency analysts have suggested that the only time ETH should surpass its former ATH of $4,891.70 is the full launch of the spot #Ethereum ETF product. If the best-case scenario comes true, Standard Chartered suggests the cryptocurrency could rise to $8,000 by the end of this year.
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