Over $3 billion worth of Ethereum (ETH) has been withdrawn from centralized cryptocurrency exchanges since the US approval of spot Ether ETFs in late May. This data suggests a potential supply squeeze on the horizon.
According to CryptoQuant, nearly 800,000 ETH, valued at $3.02 billion, have left exchanges between May 23 and June 2. This exodus indicates that investors are moving their holdings to self-custody wallets, potentially signaling a long-term hold strategy rather than immediate selling.
Further supporting this trend, analyst Leon Waidmann of BTC-ECHO reports that the percentage of circulating Ether held on exchanges has plunged to a multi-year low of just 10.6%, based on Glassnode data.
The arrival of spot Ether ETFs is expected by some to be imminent, with Bloomberg analyst Eric Balchunas predicting a late-June launch. This development, similar to the launch of spot Bitcoin ETFs in January, could trigger a surge in demand for Ether, potentially pushing its price past its November 2021 peak of $4,870.
Crypto analyst Michael Nadeau suggests that Ethereum could benefit even more than Bitcoin from increased demand due to its lower “structural sell pressure.” Unlike Bitcoin miners who must sell BTC to cover operational costs, Ethereum validators face no such expenses.
