65% of Ethereum is Held in Accumulation Wallets in 2024, Indicating Growing Institutional Interest
A crypto analyst recently noted that 65% of Ethereum has been stored in accumulation wallets since the start of 2024, indicating a shift beyond tech enthusiasts to broader institutional adoption.
Approximately $50.4 billion in Ether remains held in accumulation addresses, a 65% increase from early 2024, according to CryptoQuant contributor Burakkesmeci in an Oct. 20 analysis note.
11.5 Million ETH Increase in Accumulation Wallets
As of the publication of this report, Ether (ETH) (tickers down to $2,690.39 and currently trading at $2,645) holds roughly $50.2 billion in accumulation addresses. These accounts belong to investors who have not withdrawn their ETH holdings.
Burakkesmeci pointed out that accumulation addresses grew by 65% in 2021 and contained around 11.5 million Ethereum as of January. These addresses signal investor confidence in Ethereum’s long-term outlook.
According to Burakkesmeci, the total ETH in accumulation wallets is expected to surpass 20 million by the end of 2024, with this prediction based largely on the anticipated debut of spot Ether ETFs in July.
“It has grown from a fascination of the technophiles to being integrated by institutions and individuals as part of the financial solution,” Burakkesmeci said.
Spot Ether ETFs and Institutional Adoption
Spot Ether ETFs that began trading on July 23 have seen net redemptions of $467.3 million, according to Farside data.
On Oct. 15, Cointelegraph reported that Ethereum investors are increasingly frustrated as the open supply continues to grow alongside rising demand.
Trader Concerns Over Ether’s Future and Open Interest
In a recent blog post, Vitalik Buterin highlighted concerns around Ethereum’s transaction times, suggesting that optimizing it with single-slot finality could help address the issue.
The aggregate Ether futures market recently crossed 5 million ETH in open interest, a 12% increase from four weeks prior. Some traders view this increase in leveraged ETH positions as a potential warning signal, as it can precede sharp declines in ETH prices.