Ethereum Demand Surges With Permanent Holders Buying 298K ETH in One Day
While investors await a rally, data suggest a surge in demand for the world’s largest altcoin.
Permanent Ethereum Holders Bought Big
According to CryptoQuant head of research Julio Moreno’s recent findings, Ethereum’s demand has spiked due to a significant buying spree by “permanent holders” of the cryptocurrency. This cohort recorded the second-highest daily purchase volume ever on June 13th, acquiring 298,000 ETH—worth more than $1 billion at the current price. This figure nearly touched the highest daily buying by permanent holders on September 11, 2023, when Ethereum investors bought 317,000 ETH.
Despite this surge, Ethereum’s price is nearly 8% down over the past week following several corrections, currently trading slightly above $3,500. The latest surge in demand underscores growing interest and confidence among long-term investors ahead of spot Ethereum ETF trading.
Wealthy Investors Accumulate Ethereum
Wealthy investors continue to accumulate Ethereum, as evidenced by the rise in the number of addresses holding 10,000 or more ETH over the last three weeks. Investment products based on Ethereum also witnessed significant inflows after the US Securities and Exchange Commission (SEC) granted the initial round of applications in May.
Recently, Coinbase experienced its largest Ethereum outflow of the year on June 12th, with over 336,000 ETH, worth $1.17 billion, being withdrawn. The transactions ranged from $400 million to $1.1 billion, indicating movement by whales or unidentified institutions in anticipation of a price rise.
Update on Spot Ether ETF
SEC Chair Gary Gensler updated senators during a budget hearing on Thursday that the final approval of spot Ethereum ETFs is expected to conclude by the end of this summer. The process of approving Ethereum ETFs is progressing “smoothly” after the initial batch was approved last month. The final registration requirements, known as S-1 filings, are now being handled at the staff level. Once these filings are approved, the new spot Ethereum ETFs can be listed.
