Ethereum, centralized exchange holdings at three-year low…ETF and corporate demand surge
Summary
- It reported that centralized exchanges' Ethereum (ETH) holdings have fallen to their lowest level in three years.
- It said that recent spot Ethereum ETF and institutional accumulation demand are the main causes of the holdings decline.
- It reported that several companies' inclusion of ETH as financial assets has accelerated the decline in exchange liquidity.
Centralized exchanges' Ethereum (ETH) holdings have fallen to their lowest level in three years.
On the 4th (local time), Cointelegraph cited CryptoQuant data showing that exchange Ethereum holdings peaked at about 28,800,000 ETH in September 2022 and have now fallen to about 17,400,000 ETH. It is estimated that about 2,500,000 ETH have flowed out of exchanges over the past three months.
The decline in exchange holdings is analyzed to be due to spot Ethereum spot ETFs and institutional accumulation demand. The spot Ethereum spot ETF launched in July last year recorded net inflows of more than 13 billion dollars, and in particular, 5.4 billion dollars poured in during July alone, setting a record. In addition, several companies have recently incorporated ETH into their financial assets, accelerating the decrease in exchange liquidity.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.
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