Since the US approval of spot Ether (ETH) exchange-traded funds (ETFs) on May 23, centralized crypto exchanges have seen an exit of over $3 billion worth of Ether.
Between May 23 and June 2, exchange reserves dropped by about 797,000 ETH.
This reduction in exchange-held Ether suggests that investors are moving their assets to self-custody, thereby decreasing the number of coins available for immediate trading and indicating a long-term holding strategy.
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Leon Waidmann, an editor and analyst at BTC-ECHO, pointed out that the share of circulating Ether held on exchanges has reached a multi-year low of only 10.6%.
The introduction of spot Ether ETFs could drive high demand, potentially pushing Ether's price beyond its previous all-time high of $4,870, set in November 2021. Bloomberg ETF analyst Eric Balchunas noted that it is probable that Ether ETFs will be launched by the end of June.
At the time of writing, Ether is trading at $3,821.31, showing a 1.16% increase over the past 24 hours and a nearly 22% drop from its all-time high.
Overall, as investors shift their Ethereum to self-custody in anticipation of ETF-driven demand, the market monitors potential impacts on supply dynamics and price movements.
After the ETFs were approved, VanEck released an advertisement encouraging viewers to "Enter the Ether."
