Investors are moving their Ether (ETH) holdings from centralized exchanges to self-custody, resulting in a significant reduction of over $3 billion in ETH on exchanges. This decrease in exchange reserves indicates that fewer tokens are available for sale. Reports show that the supply of Ether held by exchanges has dropped to its lowest level in years, at 10.6%. The approval of the first-ever Ether ETF by the US Securities and Exchange Commission has contributed to this trend. Data from CryptoQuant and Glassnode confirms the decrease in Ether on exchanges. Analysts believe that Ether has the potential to benefit more from demand pressure than Bitcoin due to its lack of “structural sell pressure” caused by miners selling BTC to cover mining costs. Bloomberg analyst James Seyffart suggests that a spot Ether ETF could launch in June. BlackRock, Franklin Templeton, VanEck, and Invesco Galaxy have updated their S-1 forms with the SEC, indicating progress towards the launch of their Ether ETFs. The anticipation around the Ether ETF could lead to ETH surpassing its all-time high price and entering the $5000 zone, reducing Bitcoin’s dominance in the market. However, concerns have been raised about the Grayscale Ethereum Trust (ETHE), which manages $11 billion in funds, potentially impacting the Ether price similarly to the Grayscale Bitcoin Trust (GBTC). Currently, ETH is trading at $3,815, with a 1% increase in the last 24 hours and a 23% increase in the last 30 days.
