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Ethereum surges as investors anticipate ETH spot ETF trading launch.
Ethereum has witnessed a rapid movement into exchanges as the world’s largest cryptocurrency traders wait for the trading of ETH spot ETFs to officially start in the United States. Market participants and analysts alike are paying close attention to and closely observing this significantly increased flow of tokens on Ethereum.
According to a market intelligence platform, Santiment, in the last 24 hours, the volume of Ethereum flowing into centralized and decentralized exchanges has surged by 116%. The inflow increased from 118,970 to as much as 257,550 tokens. To compare, such a large surge usually takes place under bearish market conditions. Still, the recently approved ETH spot ETFs have caused on-chain momentum alike. This surge can thus be attributed to traders eyeing short-term profits, most likely.
Ethereum outflows surge, indicating investor accumulation
Except for inflows, the Ethereum exchange outflow also witnessed a steep rise and surged 69 percent in a day. The outflow of tokens expanded from 121,460 to 205,460 tokens. This trend indicated an accumulation phase for investors, despite the rallying inflows that indicate potential short-term profit-taking.
Santiment’s data further disclosed that the total Ethereum supply on exchanges increased by 1.2 million coins over the past 30 days. On June 24, the supply was 18,410,000 ETH, which now sits at 19,610,000 ETH. This hike is attributed for the most part to the broader market-wide bearish momentum that saw the price of Ethereum drop from $3,500 down to roughly $2,800 in early July.
In contrast, long-term Ethereum holders appear to act differently. After a really active trading day on Monday, July 22, the holders dramatically dropped the movement of their assets. According to Santiment’s data, the five-year dormant ETH circulation dropped from 16,888 to 3,022 coins within the past day. This goes on to prove that long-term holders are optimistic about Ethereum’s prospects, which were only reaffirmed by the U.S. SEC’s green light for ETH spot ETFs earlier this week.
ETH Spot ETFs begin
The newly listed investment products will begin trading today, July 23. This has fueled bullish sentiment amongst long-term holders of Ethereum, who seem to be continuing to hold onto their assets for future gains.
At the moment, Ethereum is trading at $3,530, up 1.3% in the last 24 hours. The market capitalization is $424.3 billion, while the daily volume is $21.5 billion. This relatively positive price action sets a positive short-term outlook for Ethereum, with increased exchange activity and the impending launch of spot ETH ETFs across the board.
The approval of spot ETFs will be a historic event in the development of Ethereum and, as an extension, that of the cryptocurrency market. So, this is likely to involve many more institutional investors, opening a new avenue for investment in ETH. This may lead to increased market stability, with higher valuations due to a further influx of capital into the market.
In summary, increased ETF-related exchange activity and the post-learning anticipation of spot ETH ETFs together demonstrate that, yes, markets are a very real feature in cryptocurrency. As investors take a look at these developments, Ethereum’s performance in the coming days will be closely followed, which will very likely set the scene for its future trajectory amid the dynamic landscape that crypto is in.
