Ethereum Sees Massive Holder Accumulation Amid ETF Speculation

June 14, 2024

Ethereum has experienced a notable surge in demand from long-term holders. On June 12, Ethereum recorded its second-largest buying day ever, with permanent holders accumulating a staggering 298,000 ETH, valued at over $1 billion. This unprecedented activity marks a pivotal moment for the cryptocurrency industry, as it navigates through fluctuating market dynamics and looming regulatory changes.

Julio Moreno, Head of Research at CryptoQuant, shared these insights on X (formerly Twitter), highlighting that this surge in accumulation is second only to the record set on September 11, 2023, when 317,000 ETH, worth approximately $1.1 billion, was purchased by long-term holders. This renewed interest in Ethereum comes at a time when its price dipped below $3,500, presenting a strategic buying opportunity for investors.

The significant buying activity has fueled speculation about the impending launch of Ethereum ETFs. During a Senate Banking Committee hearing on June 13, U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler indicated that final approvals for listing and trading shares of Ethereum ETFs could be granted within the next three months. This follows the SEC’s recent regulatory approval of 19b-4 applications from eight ETF issuers on May 23, a crucial step towards the potential launch of these financial products.

The anticipation surrounding Ethereum ETFs has been building since the SEC showed signs of regulatory approval. However, trading can only commence once the S-1 forms from ETF issuers receive the green light. As of June 11, issuers are still awaiting feedback from the SEC regarding their S-1 applications submitted on May 31. Sources suggest that comments from the regulator were expected by June 7 but have yet to materialize, leaving the market in suspense.

This surge in demand and the potential for Ethereum ETFs reflect growing confidence in Ethereum’s future prospects. With the SEC’s decision anticipated by September, the cryptocurrency community is closely watching for developments that could significantly impact Ethereum’s market dynamics and broader acceptance.

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