Ethereum volumes heading to off-exchange wallets... a bullish sign
The amount of Ethereum (ETH) deposited by large holders into off-exchange wallets has reached its highest level since May 2018. This has led to speculation that the price of ETH could surge. On-chain analytics platform Santiment reported in a report on Friday that ETH deposits in exchange wallets among the top 100 holders of ETH hit a six-year low of $8.41 million ($11.6 billion).
In contrast, ETH holdings in non-exchange wallets reached an all-time high. "The top 100 Ethereum wallets were worth $68.39 million ($94.4 billion)," Santiment reported. The spike in the number of ETH held by whales that left exchanges and were deposited off-exchange has raised the possibility of an uptick in ETH prices. This is because cryptocurrencies that have left exchanges are generally considered to be off-limits for sale. "The fact that investors are storing ETH in external wallets rather than on exchanges is evidence that they are confident in the long-term appreciation of ETH," Santiment wrote.
Meanwhile, an Ethereum spot ETF is expected to hit the market this summer. In May, the SEC only approved the ETF's 19b-4 shelf registration statement, but not its S-1s, which are required for a full launch. The SEC's approval of the S-1s is a prerequisite for ETFs to be marketed and traded. As such, the current approval of the Ethereum spot ETF has been viewed as a "half-hearted approval" by many in and outside the market. However, SEC Chairman Gary Gensler told a U.S. Senate Appropriations Committee hearing on Wednesday that the agency is "considering approving an ETH spot ETF as soon as August."
