The approval of spot Ether ETF products by the US Securities and Exchange Commission (SEC) has led to a rapid decline in the balance of Ethereum (ETH) on centralized exchanges. This trend is significant, as most traders obtain Ethereum and other cryptocurrencies through these platforms. The availability of Ethereum is already under threat, according to top market expert Ali Martinez.

Since the spot Ethereum ETF products were authorized, approximately 777,000 ETH, valued at almost $3 billion, has been withdrawn from cryptocurrency exchanges. This pattern could have a substantial impact on the long-term price movement of Ethereum, even before the ETF products begin trading officially.

The data provided by Martinez shows an interesting trend. The current Ethereum balance on exchanges is the lowest it has been since at least December 11, 2023. This could lead to a supply shock for Ethereum, given the significant institutional investment in Bitcoin via its spot ETF products. If the Ether spot ETF sees an accumulation similar to that of Bitcoin, it could propel Ethereum's price upward rapidly. This phenomenon was observed in March, when Bitcoin's price hit a new All-Time High (ATH) above $73,000 due to the influx of institutional capital.

Market Experts' Optimistic Forecast

Numerous market experts believe that the full launch of the spot Ethereum ETF product is all that is needed for ETH to break its previous ATH at $4,891. Standard Chartered's optimistic forecast suggests that the coin may reach $8,000 by the end of the year.