As the approval of a spot Ethereum (ETH) exchange-traded fund (ETF) draws nearer, traders are increasingly favoring ETH over Bitcoin (BTC).
According to a report by CryptoQuant shared with crypto.news, the ETH-BTC open interest ratio has risen from 0.54 to 0.67 in the past week. This shift indicates that traders are gaining more exposure to Ethereum, anticipating the approval of the spot ETH ETF.
Data from Santiment shows that the total open interest in ETH is currently $8.53 billion. Additionally, the total funding rate for Ethereum has increased from 0.016% to 0.018% over the past 24 hours.
This trend suggests that more traders are betting on a further rise in ETH prices, although it also implies that significant liquidations could occur due to high price volatility.
Furthermore, the demand for Ethereum has increased among “Permanent Holders”—investors who buy and hold assets long-term, excluding exchange addresses. According to CryptoQuant, these addresses accumulated more than 100,000 ETH on May 20, the highest level since September 2023.
Despite this growing accumulation, net inflows of Ethereum to exchanges reached 62,000 tokens on May 20. Most of these assets were deposited into Binance and Bybit, as reported by CryptoQuant.
Santiment data also shows a 40% decline in the number of whale transactions (those worth at least $100,000) in the past 24 hours, now totaling 10,689 transactions per day.
This activity, combined with the inflow to exchanges, suggests that investors are positioning themselves for the ETH ETF approval, anticipating significant price volatility and potential short-term profit-taking.
Currently, ETH has increased by 1.7% in the past 24 hours, trading at $1,810. Its market cap stands at $457 billion, with a daily trading volume of $24.6 billion.
However, it’s important to note that Ethereum could experience a sharp decline if the U.S. SEC rejects or delays the spot ETH ETFs.
Summary Review: As anticipation builds for the approval of a spot Ethereum ETF, traders are increasingly shifting their focus from Bitcoin to Ethereum. This is reflected in the rising ETH-BTC open interest ratio and increased trading activity around ETH. While Ethereum‘s demand among long-term holders and its recent price gains indicate strong market confidence, the influx of ETH to exchanges suggests that traders are also preparing for potential short-term volatility. The market remains poised for significant movements depending on the SEC‘s decision on the spot ETH ETF, which could either propel Ethereum further or lead to a sharp downturn if the approval is denied or delayed.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
