$3 Billion in ETH Leaves CEX Platforms Since Approval of Ethereum ETFs

According to CryptoQuant, a substantial amount of ETH has flowed out of centralized exchange platforms (CEXs) since Ethereum ETFs received the green light from the SEC.

$3 billion in ETH leaves CEX platforms since Ethereum ETF approval

CryptoQuant data reveals that $3 billion worth of ETH has exited centralized trading platforms since the SEC approved Ethereum spot ETFs on May 24 in the United States. This signals a potential tightening of Ether's supply.

During the period from May 23 to June 2, approximately 797,000 ETH tokens were withdrawn from exchange platforms, totaling over $3 billion in value.

This significant outflow has resulted in a considerable depletion of reserve assets on CEXs, particularly as investors move funds away for purposes beyond immediate trading activities.

On-chain analyst Leon Waidmann shared Glassnode data indicating that the circulating supply of Ether on exchanges is at a record low in recent years, standing at only 10.6%.

Last week, ETF analyst Eric Balchunas of Bloomberg suggested that Ether ETFs could begin trading by late June.

Other analysts believe Ether could surpass its November 2021 all-time high of $4,870 after the introduction of spot Ether ETFs, driven by increasing demand from the community. This scenario mirrors the period following the launch of Bitcoin spot ETFs earlier this year.

In a piece on The DeFi Report, crypto analyst Michael Nadeau explores whether the crypto market is entering a transitional phase, noting Ether's potential advantages over Bitcoin due to lower selling pressures. Unlike Bitcoin miners who sometimes sell BTC to cover operational costs, Ethereum validators operate differently with lower operational expenses.

However, as reported by Coin68, concerns persist that Grayscale's Ethereum Trust (ETHE) could impact Ether's price similarly to how Grayscale Bitcoin Trust (GBTC) did, experiencing $6.5 billion in outflows in its first month after SEC approval.

According to Kaiko, Grayscale's Ethereum ETF is expected to see a $3 billion outflow in its first month, averaging $110 million in daily outflows, equivalent to 30% of ETH's average daily trading volume on Coinbase.

ETH is currently trading around $3,820, showing minimal movement over the past 24 hours.

Hourly chart of ETH/USDT pair on Binance as of 01:20 PM on June 3, 2024