Institutional money pours into Ethereum and addresses holding more than 10,000 ETH surge

All eyes are on ethereum ETFs. The SEC's surprising turn of events last month has led to a surge in addresses holding large amounts of eth during the period.

Such a trend could potentially signal a much-needed revival for the world's largest altcoin, which has been struggling to break above the $4,000 resistance level.

Rich investors accumulate eth

There has been a 3% increase in the number of ethereum addresses holding 10,000 or more eth over the past three weeks. This metric is considered an indicator of rising institutional investment and accumulation by ethereum whales and high net worth individuals.

Popular crypto analyst Ali Martínez x.com/ali_charts/status/1799908829221749005″ target=”_blank” rel=”noopener” data-wpel-link=”external”>tweeted,

“The number of #ethereum addresses holding more than 10,000 $eth has increased by 3% over the past three weeks, indicating a significant increase in buying pressure!”

As such, an increase in addresses with large eth holdings suggests growing buying and demand pressure from deep-pocketed investors. This could potentially be a next bull run for ethereum, as whale supply accumulation is often a precursor to a rally in asset prices.

This comes a month after the US Securities and Exchange Commission (SEC) reached a landmark decision to approve the ethereum spot ETF. The financial watchdog granted permission for a total of eight separate ETF products tracking ethereum proposed by Grayscale, VanEck, ARK Invest, Franklin Templeton, Fidelity, BlackRock, 21Shares and Invesco Galaxy.

These listings will allow traditional investors to gain exposure to the cryptocurrency through regulated investment vehicles and are also expected to unlock new capital inflows while boosting its overall accessibility and liquidity. The whales are therefore optimistic about development, as evidenced by the resulting cumulative activity.

ethereum is scarcer than bitcoin on exchanges

Glassnode further validates this trend x.com/LeonWaidmann/status/1799816495910031558″ target=”_blank” rel=”noopener” data-wpel-link=”external”>data, showing that centralized exchanges are experiencing a supply crisis for both bitcoin and ethereum. Only 11.73% of the total bitcoin supply and an even smaller 10.56% of ethereum supply remain on major exchanges.

This indicates that investors are withdrawing and holding their cryptocurrencies off exchanges, further indicating an accumulation trend.

When supply on exchanges dries up, it can create upward pressure on prices as buyers absorb the remaining liquidity. Interestingly, ethereum appears to be even scarcer than bitcoin on exchanges currently.

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