Bitcoin and Ethereum supplies on centralized exchanges have hit record lows following the introduction of crypto-related spot exchange-traded funds (ETFs) in the United States.According to Glassnode data, Bitcoin balances on exchanges have fallen to 11.6%, the lowest since December 2017. Ethereum balances are even lower at 10.6%, the lowest since October 2015.Market experts have explained that the declining exchange balances coincide with the Securities and Exchange Commission’s (SEC) approval of ETF products for Bitcoin and 19-b filings for Ethereum.HeyApollo data reveals that spot Bitcoin ETFs have accumulated 857,700 BTC, valued at $58.5 billion, in just five months. BlackRock’s IBIT ETF leads this acquisition with around $20 billion in assets, followed by Fidelity’s FBTC, with approximately $11 billion.While spot Ethereum ETFs have not yet begun trading, investor anticipation has driven significant withdrawals. According to CryptoQuant data, 777,000 ETH, worth about $3 billion, have been pulled from exchanges since the SEC’s approval.Additionally, the option to stake ETH has influenced its declining exchange balance. Nansen reports that 32.8 million ETH, or 27% of its total supply, are currently staked to support the network.Is a supply crunch on the way?If the declining exchange balance trend continues, market experts have predicted demand for Bitcoin and Ethereum could lead to a supply crunch.In a recent social media post, BTC Echo editor Leon Waidmaan advised investors to brace for a “supply squeeze” and the possibility of “the next big move.”Historically, when digital assets are withdrawn from exchanges, it suggests investors plan to hold rather than sell, reflecting bullish sentiment and expectations of future growth. A supply squeeze could significantly impact prices by limiting the available supply, potentially leading to substantial price increases if current accumulation trends persist.Oluwapelumi values Bitcoin’s potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.Also known as “Akiba,” Liam is a reporter, editor and podcast producer at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change. Daily digest of top crypto stories and market insights. Never miss out.The S-1 filing follows the SEC’s approval of NYSE Arca’s proposed rule change on behalf of ProShares.Rob Marrocco believes crypto ETFs beyond Bitcoin and Ethereum are unlikely without first establishing a futures market or changing regulation.Ripple said Standard Custody CEO Jack McDonald would help the firm achieve its USD-backed stablecoin plans.The examinations will determine S&C’s awareness of FTX misconduct and potential conflicts during SBF’s Robinhood shares acquisition.Miller argued that the flagship crypto remains vastly undervalued and predicts a major shift in global capital governance.The report highlights significant gaps in law enforcement’s ability to track and recover illicit digital assets moved via privacy coins, layer-2 networks, and crypto mixers. DeFi Technologies recently adopted BItcoin as its primary treasury reserve asset.Japanese firm Metaplanet saw its stock surge 10% after its most recent Bitcoin acquisition.CryptoSlate’s latest market report dives deep into the effects corporate Bitcoin purchases have on the market.Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.
