Traders are increasingly favoring Ethereum (ETH) over Bitcoin (BTC) before the expected approval of a spot Ethereum (ETH) exchange-traded fund (ETF). This can be seen in the rising ETH-to-BTC open interest ratio.
A report from CryptoQuant was shared analyst says that this number has gone from 0.54 to 0.67 in the last week, which means that investors are more interested in Ethereum because of the expected approval of the ETF.
According to data from Sanction, the total amount of open interest in ETH is now $8.53 billion, and the overall funding rate for Ethereum has gone up from 0.016 percent to 0.018 percent in the last 24 hours. Based on these numbers, it looks like more buyers are betting that the price of ETH will go up, which could cause many people to sell their holdings when prices are volatile.
Ethereum Trader Interest Surges Pre-ETF
A rise in demand for Ethereum has also been seen among “Permanent Holders,” or buyers who buy assets and keep them for a long time.
CryptoQuant says that on May 20, these people had more than 100,000 ETH, the most they had since September 2023. Even though these assets were building up, 62,000 ETH came into platforms on the same day, most of which went to Binance and Bybit.
According to Santiment’s data, the number of whale transactions worth at least $100,000 in ETH has dropped by 40% in the last 24 hours. There are now 10,689 transactions every day. This drop and a large amount of ETH entering platforms suggest that investors are waiting for the ETF approval and are planning to take short-term profits.
ETH’s value has increased by 1.7% in the last 24 hours, now selling at $1,810. It has a market cap of $457 billion, and $24.6 billion worth of trades happen daily. You should know that Ethereum could go down a lot if the U.S. Securities and Exchange Commission (SEC) rejects or delays the approval of spot ETH ETFs.
