Cryptocurrency exchanges see $3 billion worth of Ethereum exits following ETF approval.

Following the approval of a spot Ether exchange-traded fund (ETF) in the United States on May 23, $3 billion worth of Ether (ETH) has been removed from centralized cryptocurrency exchanges, signaling a potential supply shortage.

According to CryptoQuant data, the amount of Ether on exchanges decreased by approximately 797,000 between May 23 and June 2. This is equivalent to $3.02 billion.

Low exchange holdings mean there are fewer coins available for sale as investors move their coins into their own storage for purposes other than immediate sales.

The percentage of Ether supply in circulation on exchanges is also at 10.6%, the lowest level in years, according to Glassnode data shared by BTC-ECHO analyst Leon Waidmann.

Ethereum ETF pioneers the path to ATH

Last week, Bloomberg ETF analyst Eric Balchunas advised that there was a “legitimate possibility” that an Ether ETF would launch by the end of June.

Some analysts believe that Ether could break its November 2021 all-time high of $4,870 once the spot Ether ETF begins trading due to increased demand pressure. This is similar to Bitcoin (BTC) following the launch of spot Bitcoin ​ETF trading in January.

Related: As the Ether ETF countdown nears its end, Ethereum is set to hit a new all-time high.

DeFi Report Cryptocurrency analyst Michael Nadeau said in a May 28 report that Ethereum could benefit much more from demand pressure than Bitcoin because it does not have the same level of “structural selling pressure.”

For example, Bitcoin miners sometimes need to sell BTC to cover mining costs, while Ethereum validators do not incur the same operating costs as Bitcoin miners.

However, if Grayscale’s Ethereum Trust (ETHE), which manages $11 billion in funds, follows Grayscale Bitcoin Trust (GBTC), which recorded a $6.5 billion outflow in the first month after approval, Ethereum’s There are also concerns that it could affect price action. .

According to CoinMarketCap, Ethereum is currently trading at $3,781, down 0.82% in the last 24 hours and about 23% below its all-time high.

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