Ether, the native cryptocurrency of the Ethereum network, has seen a significant increase in accumulation by long-term holders despite a 2% price decline within a 24-hour period.
In a recent update on X, Julio Moreno, CryptoQuant’s head of research, highlighted a surge in Ethereum demand, noting that acquisitions by permanent holders reached the second-highest level on record. On June 12 alone, accumulation addresses obtained approximately 298,000 Ether tokens, valued at around $1.34 billion at the time of reporting. This volume was only 6% below the previous record set on September 11, 2023, when long-term holders purchased 317,000 Ether amid a drop below $1,600.
Ether has experienced an 8.49% decline over the past week. Despite briefly dropping below $3,800 on June 8, it has maintained levels above $3,400, according to CoinMarketCap data. As of the latest update, Ether is trading at $3,500, with this price point proving to be a strong resistance level in recent trading history.
In regulatory news, Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), hinted at potential approval for spot Ether exchange-traded funds (ETFs) by the end of September. Speaking at a Senate Banking Committee hearing, Gensler indicated the SEC’s readiness to finalize approvals for the trading of spot Ether ETF shares within the next three months. Earlier on May 23, the SEC granted preliminary approval for spot Ether ETFs, accepting 19b-4 filings from eight applicants, pending final S-1 registration statement approvals for trading commencement.
The approval of spot ETH ETFs is seen as a significant milestone, potentially affirming Ether’s classification as a non-security, according to industry analysts. Bloomberg ETF analyst James Seyffart noted that this regulatory move explicitly acknowledges Ether as a commodity, which could extend to other digital tokens, thereby solidifying their classification.
Echoing this sentiment, digital asset lawyer Justin Browder emphasized that final S-1 approvals for Ether ETFs would conclusively settle debates about Ether’s regulatory status. Adam Cochran from Cinneamhain Ventures suggested that such developments could have broader implications for tokens across various projects.
On May 23, the SEC officially approved 19b-4 applications from prominent ETF issuers including VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise for issuing spot Ether ETFs, with several issuers making final amendments by excluding staking features.
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