Supply of Ethereum on Exchanges Takes a Drastic Dive Following SEC’s Green Light for Spot Ether ETF

Approximately $3 billion worth of Ethereum (ETH) has been taken out of crypto exchanges, potentially impacting the long-term price movement of the cryptocurrency. The approval of spot Ether ETF products by the US Securities and Exchange Commission (SEC) has led to a decrease in the amount of ETH held on centralized exchanges. This trend, highlighted by market expert Ali Martinez, suggests that Ethereum’s availability is at risk. The current balance of ETH on exchanges is the lowest it has been since December 11, 2023, indicating a potential supply shock in the near future. If the Ether spot ETF accumulates a similar amount of investment as Bitcoin, it could drive up the price of Ethereum. This phenomenon was observed with Bitcoin in March, when its price reached a new all-time high due to institutional capital inflow. Market experts believe that the full launch of the spot Ethereum ETF product could help ETH surpass its previous all-time high of $4,891, with some predicting a price of $8,000 by the end of the year.