Ether, the native cryptocurrency of the Ethereum network, has seen a significant increase in long-term holder accumulation, with a 2% price drop over a 24-hour period. Julio Moreno, the head of research at CryptoQuant, highlighted the surge in Ethereum demand, noting that buying by permanent holders reached the second-highest level on record. Within a 24-hour timeframe on June 12, accumulation addresses acquired approximately 298,000 Ether tokens, equivalent to roughly $1.34 billion at the time of reporting. This acquisition volume was only 6% lower than the previous record set on September 11, 2023, when long-term holders purchased 317,000 Ether as the price dipped below $1,600.
The increased demand for Ether comes amidst an 8.49% price decline over the past seven days. Though the cryptocurrency briefly fell below $3,800 on June 8, it has remained above $3,400. At the time of writing, Ether is trading at $3,500. The $3,500 price level has proven to be a strong resistance for Ether bulls, as observed in past price action. In addition, Gary Gensler, the chair of the United States Securities and Exchange Commission (SEC), hinted at the potential approval of spot Ether exchange-traded funds (ETFs) for trading by the end of September during a Senate Banking Committee hearing. The SEC had previously granted preliminary regulatory approval for spot Ether ETFs on May 23, approving 19b-4 filings from eight applicants.
The recent approval of spot ETH ETFs potentially confirms Ether’s status as a non-security, according to industry experts. Bloomberg ETF analyst James Seyffart has said that the approval of these commodity-based trust shares implies that the SEC explicitly recognizes Ether as not being a security. Seyffart further suggested that this recognition could extend to other tokens as well, solidifying their classification as commodities. Digital asset lawyer Justin Browder echoed Seyffart’s sentiment, stating that if Ether ETFs receive S-1 approval, which is the final requirement for them to begin trading, it would settle the debate once and for all, affirming that ETH is indeed not a security. Adam Cochran, a partner at venture capital firm Cinneamhain Ventures, suggested that this line of thinking could be applied to tokens of other projects as well.
On May 23, the SEC officially approved 19b-4 applications from several ETF issuers for issuing spot Ether ETFs, including VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise. Some ETF issuers removed staking from their final amendments. The increased demand for Ethereum and the potential approval of spot Ether ETFs by the SEC have led to a positive sentiment among investors and industry experts. The accumulation of Ether by long-term holders and the price resilience above $3,400 amidst market fluctuations indicate a strong bullish sentiment for the cryptocurrency. With the potential approval of spot Ether ETFs, experts believe that Ether’s classification as a non-security could be further solidified, potentially impacting the classification of other tokens as well.
In conclusion, the recent surge in Ethereum demand, the increase in long-term holder accumulation, and the potential approval of spot Ether ETFs by the SEC point towards a positive outlook for Ether and the broader cryptocurrency market. As the price of Ether remains resilient above $3,400 despite market fluctuations, investors and industry experts are optimistic about the future of the cryptocurrency. The approval of spot Ether ETFs could further affirm Ether’s status as a non-security and potentially impact the classification of other tokens in the market. Overall, the current developments surrounding Ether signal a bullish sentiment and a positive trajectory for the cryptocurrency in the coming months.
