As per data provided by IntoTheBlock, Ethereum, the second-largest cryptocurrency by market capitalization, has witnessed substantial outflows from exchanges in recent weeks, with over $1 billion in ETH being withdrawn from crypto trading platforms during this period.
The outflows for ETH reached $320 million in the current week alone, contributing to a cumulative total of over $1 billion in the preceding three weeks. This consistent trend of exchange outflows typically suggests a migration of funds from centralized exchanges to private wallets, often indicative of a strategic move by investors to hold assets for an extended duration.
One prevalent hypothesis supporting the surge in exchange outflows is that long-term investors are choosing to secure their assets for an extended period, reflecting a vote of confidence in the cryptocurrency’s long-term potential.
As of the latest update, ETH experienced a 1.39% decrease in the past 24 hours, bringing its value to $1,938. IntoTheBlock also reports an increase in Ethereum fees, aligning with heightened market volatility and DeFi (decentralized finance) activity.
In a noteworthy development, financial giant Fidelity has entered the competition for a spot Ethereum Exchange-Traded Fund (ETF) by filing a 19b-4 with the Chicago Board Options Exchange (CBOE). This move positions Fidelity as the seventh entity seeking approval for an Ethereum ETF.
According to Bloomberg analyst James Seyffart, Fidelity’s filing indicates a strategic move to launch an ETF that holds Ethereum’s native currency, ETH. If approved, the Fidelity Ethereum Fund would be listed on a Cboe Global Markets exchange, putting Fidelity in the company of others, including BlackRock, championing the adoption of cryptocurrencies.
It’s worth noting that the Securities and Exchange Commission (SEC) recently postponed its decision on the approval of the Hashdex Nasdaq Ethereum ETF. This ETF aims to encompass both spot Ethereum and futures contracts. The SEC cited the need for additional time to deliberate and commit to reaching a decision by January 1, 2024.