Ethereum Demand Surges With Permanent Holders Buying 298K ETH in One Day

Ethereum continued to face challenges as it remained above the $4,000 level, reflecting the lack of momentum in the broader market.

While investors wait for the rally, data indicates an increase in demand for the world's largest altcoin.

Permanent Ethereum holders bought large amounts

As CryptoQuant's head of research, Julio Moreno, recently reported the findingsDemand for Ethereum has increased due to a large wave of buying by “permanent owners” of the cryptocurrency. In fact, this group of owners recorded the second-highest daily purchase volume ever on June 13 after acquiring 298,000 ETH – which is worth more than $1 billion at the current price.

This number almost reached the highest levels of daily buying by permanent holders on September 11, 2023, when this group of Ethereum investors purchased 317,000 ETH.

On the other hand, Ethereum price fell by approximately 8% over the past week after several corrections. It was currently trading just above $3,500. Thus, the recent surge in demand has highlighted the growing interest and confidence in Ethereum among long-term investors ahead of spot trading Ethereum ETFs.

Wealthy investors have continued to pile in, as evidenced by the rise in the number of Ethereum addresses holding 10,000 or more ETH over the past three weeks. Ethereum-based investment products also saw a significant influx after the US Securities and Exchange Commission (SEC) approved the first round of applications in May.

Most recently, Coinbase saw its largest Ethereum outflow of the year on June 12, with over 336,000 ETH withdrawn, worth $1.17 billion. The transactions, which ranged from $400 million to $1.1 billion, indicate the movement of whales or unidentified institutions in anticipation of rising prices.

Update on Spot Ether ETF

SEC Chairman Gary Gensler told senators during a budget hearing on Thursday that final approval of the Ethereum spot ETF is expected to be completed by the end of this summer.

The approval process for ETFs progresses “smoothly” after initial approval of a range of these products. The agency greenlighted the first round of applications last month, and Gensler said the final filing requirements, known as S-1 filings, are now being handled at the staff level.

Once these deposits are approved, new spot ETFs can be listed.