Ethereum demand surges with permanent holders buying 298,000 ETH in one day

ethereum has continued to face challenges in staying above the $4,000 mark, reflecting the lack of momentum in the broader market.

As investors wait for a rebound, data suggests an increase in demand for the world's largest altcoin.

ethereum Permanent Holders Bought Big

According to CryptoQuant's recent head of research, Julio Moreno x.com/jjcmoreno/status/1801334325188735048″ target=”_blank” rel=”noopener” data-wpel-link=”external”>recommendations, demand for ethereum has skyrocketed due to a significant wave of buying by “permanent holders” of the cryptocurrency. In fact, this cohort of holders recorded the second-highest daily buying volume in history on June 13 after acquiring 298,000 eth, which is worth over $1 billion at the current price.

The figure almost touched its highest daily purchase by permanent holders on September 11, 2023, when this group of ethereum investors bought 317,000 eth.

ethereum price, on the other hand, is down almost 8% over the last week following several corrections. It was currently trading a little above $3,500. Therefore, the latest surge in demand highlighted the growing interest and confidence in ethereum among long-term investors ahead of ethereum ETF spot trading.

Wealthy investors have continued to accumulate, as evidenced by the increase in the number of ethereum addresses holding 10,000 or more eth over the past three weeks. ethereum-based investment products also saw significant inflow after the US Securities and Exchange Commission (SEC) granted the initial round of applications in May.

Most recently, Coinbase experienced its largest ethereum outflow of the year on June 12, with the withdrawal of over 336,000 eth, worth $1.17 billion. The transactions, which ranged from $400 million to $1.1 billion, indicated movements by unidentified whales or institutions in anticipation of a price increase.

Spot Ether ETF Update

SEC Chairman Gary Gensler updated senators during a budget hearing on Thursday that final approval of the ethereum spot ETF is expected to conclude later this summer.

The approval process for Ether ETFs is proceeding “smoothly” after the initial approval of a batch of such products. The agency had previously given the green light to the first round of applications last month and Gensler stated that the final registration requirements, known as S-1 filings, are now being handled at the staff level.

Only once these filings are approved will the new ethereum spot ETFs be listed.

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