Ether, Ethereum’s native cryptocurrency, has seen a significant rise in accumulation by long-term holders despite a 2% price decline over a 24-hour period.
According to Julio Moreno, head of research at CryptoQuant, in a recent X post, there has been a notable increase in demand for Ethereum. He noted that acquisitions by permanent holders recently reached their second-highest level ever recorded.
On June 12 alone, addresses focused on accumulation obtained about 298,000 Ether tokens, valued at approximately $1.34 billion at the time of reporting.
This acquisition volume was only 6% lower than the previous record observed on September 11, 2023, when long-term holders purchased 317,000 Ether during a price drop below $1,600.
Ether Sees 8% Drop in Past Week
Ether has faced an 8.49% decline in price over the last seven days, briefly dropping below $3,800 on June 8 but maintaining above $3,400 according to CoinMarketCap data.
As of the latest update, Ether is trading at $3,500, with this price level proving resilient against bullish pressures in recent market activity.
In regulatory developments, Gary Gensler, chair of the United States Securities and Exchange Commission (SEC), suggested the potential approval of spot Ether exchange-traded funds (ETFs) for trading by the end of September.
Speaking at a Senate Banking Committee hearing, Gensler indicated the SEC’s readiness to finalize approvals for listing and trading shares of spot Ether ETFs within the next three months. Earlier, on May 23, the SEC had granted preliminary regulatory approval for spot Ether ETFs, endorsing 19b-4 filings submitted by eight applicants. However, trading will commence only upon approval of the S-1 registration statements.
Spot Ether ETF Approval Proves ETH is Not a Security
The recent approval of spot Ether (ETH) ETFs potentially marks a significant milestone in confirming Ether’s status as a non-security, according to industry experts.
Bloomberg ETF analyst James Seyffart has noted that the approval of these commodity-based trust shares signifies a clear stance from the SEC recognizing Ether as not falling under the category of securities. This recognition, Seyffart suggests, may also extend to other tokens, reinforcing their classification as commodities.
Digital asset lawyer Justin Browder echoed Seyffart’s view, emphasizing that the final approval of S-1 filings for Ether ETFs would conclusively settle any lingering debate about Ether’s status as a non-security.
Adam Cochran, a partner at Cinneamhain Ventures, expanded on this perspective, suggesting that similar reasoning could potentially apply to tokens associated with other blockchain projects.
On May 23, the SEC officially granted 19b-4 applications from several prominent firms, including VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise, for the issuance of spot Ether ETFs. It’s noteworthy that several ETF issuers opted to exclude staking from their final amendments.
