\n
![](\"https:\/\/readwrite.com\/wp-content\/uploads\/2024\/06\/2922fe38-0c5b-489a-a814-b22577d88937-900x514.webp\")
<\/p>\n [ad_1]
\n<\/p>\n
In the wake of the approval of spot Ethereum exchange-traded funds (ETFs) in the United States on May 23, a significant shift in Ethereum holdings has occurred.<\/p>\n
According to data from CryptoQuant<\/a>, centralized crypto exchanges (CEXes) have seen a withdrawal of approximately 797,000 ETH, equivalent to $3.02 billion, between May 23 and June 2. This substantial decrease in exchange reserves suggests that investors are moving their Ethereum into self-custody, reducing the immediate supply available for sale.<\/p>\n Glassnode data, shared by BTC-ECHO analyst Leon Waidmann<\/a>, reveals that the percentage of circulating Ethereum supply held on exchanges has reached its lowest level in years, currently standing at just 10.6%. This reduction in available supply on exchanges could potentially contribute to increased demand pressure on Ethereum.<\/p>\n \ud83d\udcc9 Exchange balances for both #Bitcoin<\/a> and #Ethereum<\/a> are at their lowest levels in years!\ud83d\udd25<\/p>\n Whales continue to accumulate. #BTC<\/a> on exchanges is down to 11.6% and #ETH<\/a> is at 10.6%!<\/p>\n Supply squeeze incoming. \ud83d\udcc8<\/p>\n Get ready for the next big move. \ud83d\ude80 pic.twitter.com\/u4j13DZBJk<\/a><\/p>\n \u2014 Leon Waidmann | On-Chain Insights\ud83d\udd0d (@LeonWaidmann) June 2, 2024<\/a><\/p>\n<\/blockquote>\n Currently,<\/span> Ethereum is trading at $3,775, with almost no price movement compared to 24 hours ago and a 23% decrease from its all-time high. During a recent interview <\/span>Bloomberg ETF analyst James Seyffart said that he believes<\/a> that the approval of spot Ethereum ETFs was likely influenced by political decisions rather than purely financial considerations.<\/p>\n He suggests that the political climate, including actions by the Biden administration and responses from the crypto community, played a significant role in the approval process. Beyond Bitcoin (BTC) and Ethereum, the approval of other crypto ETFs, such as Solana (SOL), is unlikely without significant regulatory changes, according to Seyffart.<\/p>\n The news follows Friday\u2019s announcement by President Biden that he decided to veto a House Joint Resolution that sought to repeal <\/a>the Securities and Exchange Commission\u2019s (SEC) Staff Accounting Bulletin 121 (SAB 121). In his veto statement, Biden made it clear that crypto regulation is now seen as a partisan issue:<\/p>\n This Republican-led resolution would inappropriately constrain the SEC\u2019s ability to set forth appropriate guardrails and address future issues.<\/p>\n<\/blockquote><\/div>\n\n
Crypto caught in a political storm<\/h2>\n
\n