Ethereum Exchange Supply Falls Below 4.9% as Bitcoin ETFs Attract Billions

• Ethereum supply on exchanges drops below 4.9% for the first time.
• Bitcoin ETFs lead institutional inflows with $1.28 billion in ten days.

Ethereum and Bitcoin are seeing the lowest exchange supplies in years, according to blockchain analytics firm Santiment. The data showed that Ethereum’s exchange supply dropped below 4.9%, the lowest level since the token launched over a decade ago. 

This sharp decline indicates increased investor preference for long-term holding and private wallet storage. Bitcoin has followed a similar path, with only 7.1% of its supply remaining on exchanges, a figure not seen since November 2018.

Over the past five years, exchange balances have shrunk by 15.3 million ETH and 1.7 million BTC. Analysts from Santiment noted that this ongoing trend may lead to a supply shock, as fewer tokens remain available for trading.

The firm emphasized that reduced liquidity could increase volatility during market surges, with the message: “There isn’t enough ETH to go round.”

Crypto ETF Inflows Reflect Growing Institutional Interest

Crypto Gics’ recent fund tracking data, between May 9 and May 19, crypto ETFs saw net inflows totaling $1.67 billion. Bitcoin ETFs led this trend, attracting $1.28 billion during the 10 days. This pushed the total assets under management (AUM) for Bitcoin ETFs to $124 billion.

Ethereum ETFs brought in $56.9 million over the same period, reaching a total AUM of $9.92 billion. Among issuers, BlackRock topped the chart with $1.68 billion in combined inflows, $1.50 billion into Bitcoin, and $177 million into Ethereum products. 

Fidelity and ARK also posted inflows into Bitcoin ETFs, while Ethereum ETFs saw mixed movement. On the other hand, Grayscale reported over $163 million in outflows across its Bitcoin and Ethereum trusts.

These patterns indicate sustained institutional interest in Bitcoin investment products. While Ethereum lags in ETF momentum, its decreasing exchange supply signals growing demand from long-term holders.

Genesis Sues DCG for $3.1 Billion Over Alleged Fraud and Misuse.

Genesis Global Capital has filed lawsuits against its parent firm, Digital Currency Group (DCG), and CEO Barry Silbert. The lender is seeking to recover over $3.1 billion, alleging fraudulent transfers and misuse of company assets. The complaints were filed in Delaware’s Chancery Court and detail a range of financial dealings following the collapse of Three Arrows Capital in 2022.

According to the lawsuit, DCG issued a $1.1 billion promissory note with a 1% interest rate to cover losses, which Genesis says masked its insolvency. Additional transfers included $448 million to DCG, $136 million to DCG International, and significant digital assets, including Bitcoin and Ethereum. Genesis argues these actions misled investors and deepened its financial instability.

DCG and former Genesis CEO Michael Moro had previously paid $38 million in fines for failing to provide accurate disclosures. The legal battle may set important precedents for transparency and accountability within the crypto finance sector.