Ethereum holders keep accumulating Ether ahead of ETF and new yield opportunities


  • Bitcoin long-term holders shed their holdings while Ethereum holders continue accumulating, per IntoTheBlock data. 
  • Ethereum holders prepare for new yield opportunities and the upcoming ETFs, likely driving the divergence between BTC and ETH. 
  • BTC and ETH wiped out nearly 2% of its value in the past seven days on Binance. 

Ethereum’s (ETH) long-term holders have continued scooping up Ether while Bitcoin’s long-term holders shed their holdings. New yield opportunities in Ether, and the upcoming ETF are likely behind the divergence in the behavior of the long-term holders of BTC and ETH. 

Ethereum’s long-term holders refrain from selling

Data from crypto intelligence tracker IntoTheBlock shows the difference in behavior of long-term holders of the two largest cryptocurrencies in the ecosystem. Crypto total market capitalization has recovered from the recent drop, with Bitcoin holders taking profits on their holdings while Ethereum holders resist selling. 

Typically, when long-term holders exit their positions and take profits, it is a sign that they expect price to drop in the future. This applies to Bitcoin since long-term holders took profits and shed their holdings. 

In the case of Ether, long-term holder behavior suggests that they believe in the potential of gains in the altcoin. 

ETH BTC

Long-term holder behavior 

The upcoming Ethereum ETF and the yield from staking and re-staking opportunities are likely catalysts driving the thesis of potential gains. 

Ethereum ETF flows could be 20% of Bitcoin: Expert opinion

Eric Balchunas, Senior ETF analyst at Bloomberg says that Ether Spot ETF flows/ volume relative to Spot Bitcoin could be 20%, to label the launch as successful by “normal ETF standards.”

Balchunas explains his stance with a visual comparing Ether’s share vs Bitcoins in different geographies. 

Bloomberg Intelligence

Bloomberg Intelligence comparison between Ether and Bitcoin Assets 

Balchunas explains that in these investment products there is an “apples to apples comparison” and the poor showing of Ether futures is a big part of his calculation. The final prediction is a 20% share of Bitcoin’s flows and volume. 

At the time of writing, Bitcoin price sustained above $64,000 while Ether inched closer to $3,500, on Binance. 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

DOGE holders may sell if it rises above key accumulation zone

DOGE holders may sell if it rises above key accumulation zone

DOGE will reclaim a key level if it rises by 5%, and traders will likely sell as they break even. DOGE's social volume has reached its lowest level in the past year. DOGE has underperformed other top meme coins year-to-date.

More Dogecoin News

SEC vs. Coinbase: Coinbase attorney's arguments fail to convince judge

SEC vs. Coinbase: Coinbase attorney's arguments fail to convince judge

SEC vs. Coinbase hearing on Thursday addresses the exchange’s demand that Chair Gary Gensler should testify. Coinbase Attorney Kevin Schwartz’s arguments fail to convince Judge Katherine Polk Failla.

More Cryptocurrencies News

Ethereum on-chain activity reveals mixed signals amid declining inflation

Ethereum on-chain activity reveals mixed signals amid declining inflation

Ethereum could rally in Q3 following reduced US inflation and launch of spot ETH ETFs. Ethereum's on-chain activity shows mixed sentiment among investors. Bearish exhaustion candle could signify a downturn for ETH if SEC delays ETH ETF approval.

More Ethereum News

Biden's veto stands, banks unable to  provide custody services for crypto

Biden's veto stands, banks unable to  provide custody services for crypto

US House failed to muster a two-thirds vote to overturn President Biden's veto of Joint Resolution 109. Several Democrats failed to support a repeal of the President's veto despite the increasing role of the crypto industry in the upcoming election.

More Cryptocurrencies News

Bitcoin: BTC sinks under $55,000 as Mt Gox prepares payment to creditors

Bitcoin: BTC sinks under $55,000 as Mt Gox prepares payment to creditors

Bitcoin (BTC) price is having its worst week of the year, influenced by selling activity among BTC miners and heavy transfers of Bitcoins to exchanges by Mt Gox and the German Government. 

Read full analysis

BTC

ETH

XRP