Ethereum has been struggling to maintain its value above $4,000, reflecting the overall lack of momentum in the market. However, despite this challenge, there has been a significant surge in demand for the popular altcoin.
Recent data from CryptoQuant’s head of research, Julio Moreno, indicates that “permanent holders” of Ethereum have been making substantial purchases of the cryptocurrency. These long-term investors bought a total of 298,000 ETH in a single day, which is valued at over $1 billion at the current price. This marked the second-highest daily purchase volume ever recorded by this group, coming close to the highest daily purchase back in September 2023.
Despite Ethereum’s price dropping by almost 8% over the past week due to various corrections, the increased demand from long-term investors signals growing interest and confidence in the cryptocurrency. This trend is further reinforced by the rising number of Ethereum addresses holding 10,000 or more ETH in the last three weeks.
Additionally, investment products based on Ethereum have seen significant inflows following the SEC’s approval of the initial batch of applications in May. Coinbase also experienced its largest Ethereum outflow of the year on June 12th, with over 336,000 ETH being withdrawn, indicating movements by whales or institutional investors anticipating a price hike.
In terms of regulatory developments, the SEC Chair Gary Gensler mentioned during a budget hearing that the final approval for a spot Ethereum ETF is expected by the end of the summer. The process of approving Ether ETFs is progressing smoothly after the initial greenlighting of a batch of such products. Once the final registration requirements are approved, the new spot Ethereum ETFs can be listed.
Overall, the increased demand for Ethereum from long-term investors and the anticipation of a spot Ethereum ETF approval highlight the growing confidence and interest in the cryptocurrency. This trend is further supported by regulatory developments and institutional movements within the market.