ETH Outflows Soar as Crypto Investors Embrace Self-Custody
CryptoNewsTerminal Staff03 Jun, 2024
ETH Outflows Soar as Crypto Investors Embrace Self-Custody
According to Cointelegraph, over $3 billion worth of ETH has exited centralized exchanges since the SEC approved the first spot ETH ETF. This surge in outflows, amounting to 797,000 ETH, indicates a growing preference for self-custody wallets among investors. Unlike Bitcoin miners, who may need to sell their holdings to cover costs, ETH validators do not have this obligation. However, the media outlet cautions that large outflows from Grayscale's Ethereum Trust (ETHE), similar to those seen when GBTC transitioned to a spot BTC ETF, could potentially negatively impact ETH prices. Following GBTC's conversion, $6.5 billion in outflows were observed within a month.
