According to CoinDesk, Ether (ETH) holders are transferring their assets to cryptocurrency exchanges at the fastest rate seen in nearly four months. This surge in activity follows a rally in the cryptocurrency, driven by growing anticipation of a U.S. spot exchange-traded fund (ETF) approval.
Blockchain data from Nansen Intelligence reveals that on Tuesday, net inflows to exchanges reached 81,840 ETH, equivalent to approximately $306 million at current prices. This is the highest daily amount since January 23. Tuesday also marked the third consecutive day of inflows, breaking the general trend of decreasing ETH balances on exchanges. The last time ETH saw consecutive days of inflows to exchanges was in March, around the peak in crypto prices for the year.
Typically, moving assets to exchanges indicates an intention to sell, while traders usually withdraw tokens from platforms if they plan to hold onto their purchases for a longer term. The recent surge in inflows could suggest short-term profit-taking after ETH's price jumped to over $3,800 from around $3,000 in a single day, according to David Shuttleworth, a research partner at Anagram.
Shuttleworth suggests that individuals may be capitalizing on a quick 30% price increase that occurred in less than 24 hours. This rally coincided with a sudden increase in the odds of a U.S. regulatory approval for spot ETH ETFs. Regulators have recently asked issuers to update their applications after months of inactivity. However, it should be noted that the approval of Ether ETFs is not guaranteed, despite the recent progress in the filing process.
