As anticipation mounts for the potential approval of a spot Ethereum (ETH) exchange-traded fund (ETF), traders are redirecting their attention towards ETH, surpassing their interest in Bitcoin (BTC).
A recent report from CryptoQuant, shared exclusively with crypto.news, unveils a notable uptick in the ETH-BTC open interest ratio, climbing from 0.54 to 0.67 within the span of the past week. This shift signals a heightened preference among traders for Ethereum over Bitcoin, attributed to the looming prospects of a spot ETH ETF endorsement.
Data sourced from Santiment underscores the burgeoning momentum behind Ethereum, with the total open interest in ETH presently pegged at $8.53 billion. Over the last 24 hours, the aggregate funding rate for Ethereum has surged from 0.016% to 0.018%, reflecting an escalating enthusiasm among traders banking on a potential upsurge in ETH’s value, albeit with a cautionary note on the heightened price volatility potentially leading to sizable liquidations.
Furthermore, insights from CryptoQuant spotlight a surge in demand for Ethereum from “Permanent Holders” – investors who acquire assets with no intention to sell, excluding exchange addresses. These addresses collectively amassed over 100,000 ETH on May 20, marking the highest accumulation level since September 2023.
However, despite the uptick in accumulation and interest, Ethereum witnessed a net inflow of 62,000 tokens into exchanges on May 20, predominantly streaming into platforms like Binance and Bybit, according to CryptoQuant data.
Simultaneously, data furnished by Santiment reveals a noteworthy decline of 40% in whale transactions involving at least $100,000 worth of ETH in the past 24 hours, with daily transactions now tallying at 10,689. This trend, coupled with the influx of assets into exchanges, suggests that investors are adopting a cautious stance, anticipating the outcome of the impending ETH ETF decision, thus bracing for heightened price volatility driven by short-term profit-taking endeavors.
At the time of reporting, ETH has experienced a 1.7% uptick over the last 24 hours, trading at $1,810. The asset’s market capitalization stands at $457 billion, with a daily trading volume of $24.6 billion.
Nonetheless, it’s imperative to acknowledge the looming specter of a potential downturn in Ethereum’s trajectory should the U.S. Securities and Exchange Commission (SEC) opt to reject or delay the approval of spot ETH ETFs.
