Ether, the native cryptocurrency of the Ethereum network, has seen a significant uptick in long-term holder accumulation, even as its price dipped by 2% over a recent 24-hour period. Julio Moreno, head of research at CryptoQuant, highlighted this surge in Ethereum demand in a recent post on X. Moreno noted that buying by permanent holders has reached the second-highest level on record.
On June 12, within a 24-hour timeframe, long-term holders acquired approximately 298,000 Ether tokens, equivalent to about $1.34 billion at the time. This volume was only 6% lower than the record set on September 11, 2023, when 317,000 Ether were purchased as the price dipped below $1,600.
Ether’s Recent Price Movement
Despite the increased demand, Ether has faced an 8.49% price decline over the past week. Although the cryptocurrency briefly fell below $3,800 on June 8, it has since remained above $3,400, according to CoinMarketCap data. At the time of writing, Ether is trading at $3,500, a level that has proven to be a resilient resistance for Ether bulls.
SEC’s Potential Approval of Spot Ether ETFs
In other news, Gary Gensler, the chair of the United States Securities and Exchange Commission (SEC), hinted at the possible approval of spot Ether exchange-traded funds (ETFs) by the end of September. During a Senate Banking Committee hearing, Gensler mentioned that the regulator might grant final approvals for the listing and trading of spot Ether ETFs within the next three months.
The SEC had previously given preliminary regulatory approval for spot Ether ETFs on May 23, approving 19b-4 filings from eight applicants. However, trading can only commence once the S-1 registration statements are also approved.
Implications of Spot Ether ETF Approval
Industry experts suggest that the approval of spot Ether ETFs would confirm Ether’s status as a non-security. Bloomberg ETF analyst James Seyffart noted that this approval implies that the SEC recognizes Ether as not being a security. Seyffart further suggested that this recognition could extend to other tokens, solidifying their classification as commodities.
Digital asset lawyer Justin Browder echoed this sentiment, stating that if Ether ETFs receive S-1 approval, it would settle the debate, affirming that ETH is indeed not a security. Adam Cochran, a partner at venture capital firm Cinneamhain Ventures, suggested that this line of thinking could be applied to tokens of other projects as well.
On May 23, the SEC officially approved 19b-4 applications from major firms such as VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise for issuing spot Ether ETFs. Notably, several ETF issuers removed staking from their final amendments.
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