Ethereum Demand Soars as Permanent Holders and Whales Accumulate Ahead of Spot ETF Approval

• Ethereum struggles to maintain a position above the $4,000 mark, reflecting broader market uncertainties.
• Nonetheless, there has been a noticeable uptick in demand for Ethereum, the world’s largest altcoin.
• Notably, long-term holders have significantly increased their acquisitions, highlighting continued confidence in Ethereum.

Explore the latest developments in the Ethereum market, including significant buying by long-term holders and updates on the spot Ethereum ETF approval process.

Long-Term Holders Make Significant Purchases

Recent findings by CryptoQuant’s head of research, Julio Moreno, reveal that permanent holders have engaged in substantial purchasing activity. On June 13th, these investors bought a remarkable 298,000 ETH, valued at over $1 billion. This marks the second-highest daily purchase volume recorded by this group, trailing only the peak of 317,000 ETH on September 11, 2023.

Despite a recent 8% price correction, dropping Ethereum to just above $3,500, the surge in demand underscores increasing interest and confidence among long-term investors, particularly with the upcoming introduction of spot Ethereum ETFs.

The accumulation trend is further evidenced by the rise in Ethereum addresses holding 10,000 or more ETH over the past three weeks. This influx aligns with significant investments into Ethereum-based products following the SEC’s initial approval of related applications in May.

Spot Ether ETF Approval on the Horizon

In a notable update, SEC Chair Gary Gensler informed senators during a recent budget hearing that the final approval for spot Ethereum ETFs is expected by the end of this summer. This update follows the smooth progression of the initial approval process for a batch of such products.

The SEC had previously granted the initial round of applications in May. Gensler mentioned that the final registration requirements, known as S-1 filings, are now being processed by staff. These filings need to be approved before any new spot Ethereum ETFs can be officially listed.

Conclusion

In summary, Ethereum’s journey above the $4,000 mark remains challenging amid broader market volatility. However, the considerable buying activity by long-term holders suggests a strong foundation of confidence in the asset’s potential. Additionally, the anticipated approval of spot Ethereum ETFs may further bolster interest and investment in the cryptocurrency.