By CryptoNews - 6 months ago - Reading Time: 2 minutes
Ethereum Exchange Outflows Exceed $1 Billion in 3 Weeks, IntoTheBlock Reports
Ethereum sees significant exchange outflows as investors potentially eye long-term holds. Image by Dennis, Adobe Stock.A torrent of Ethereum has flowed out of centralized crypto exchanges and into private wallets over the past several weeks.
ETH recorded $320M in exchange outflows this week, and over $1B through the last three weeks! pic.twitter.com/g1xJfh5p9U
— IntoTheBlock (@intotheblock) November 17, 2023
According to blockchain analytics provider IntoTheBlock, Ethereum saw $320 million in exchange outflows just this week. Over the preceding three weeks, the total topped $1 billion.
Ethereum Exchange Outflows Inspire Long-Term Industry Confidence
Massive exchange outflows frequently signal traders are moving assets into secure storage for an extended investment horizon rather than keeping them on an exchange for active trading. Some experts contend the withdrawals reflect improving sentiment around Ethereum’s long-term trajectory as investors choose storage over liquidation.
Ethereum is currently hovering around $2,019, up 0.40% over the last 24 hours according to TradingView.
Trading volumes and volatility have also picked up recently across decentralized apps and protocols, driving up transaction fees on the network.
Mainstream Ethereum Access Through ETH ETFs
In parallel, more traditional finance players are looking to grant mainstream investors exposure to Ethereum’s price movements.
Fidelity Follows BlackRock, Files For Spot Ethereum ETF – Where Next for Ether?
Fidelity joins the Ethereum ETF race, filing for the Fidelity Ethereum Trust, following BlackRock's iShares Ethereum Trust filing.#CryptoNewshttps://t.co/mDt3roAkq0
— Cryptonews.com (@cryptonews) November 18, 2023
Asset management powerhouse Fidelity is the latest to join the race for an exchange-traded fund (ETF) that would hold the underlying cryptocurrency rather than futures contracts. A Friday filing with Cboe Global Markets is seeking approval for the Fidelity Ethereum ETF.
This adds to a string of similar Ethereum ETF applications from competitors like BlackRock. But thus far, the Securities and Exchange Commission has punted decisions on Ethereum ETFs to 2024.
Industry analysts remain optimistic the regulator will eventually greenlight spot Ethereum ETFs, however, treating the asset similarly to Bitcoin.
In any case, if an ETF does go through, this will open the crypto up to the $7.4 trillion US ETF marketplace and could significantly expand access for regular investors beyond the hassles of directly holding cryptocurrencies.
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Original source: CryptoNews