How ETH holders scrambled for shelter following CTFC’s ‘commodity’ proscription

ambcrypto.com:

The number of Ethereum [ETH] held in self-custody reached its highest for the first time since the cryptocurrency became public in 2015, Santiment disclosed . At the time of writing, this number was 101.18 million, despite experiencing some drawbacks in September 2022.

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Without fail, the ETH supply on exchanges reached an all-time low, closing at 10.30%. A situation like this implied that holders of the altcoin were confident in its long-term relevance, with a possible positive effect on the price action. However, the same measures reflected the skepticism investors may have towards keeping assets on exchanges.

Source: Santiment

The development arose after the U.S. Commodity Futures Trading Commission (CTFC) accused Binance of breaking the country’s financial laws. Before the latest indictment, a number of exchanges were mounted with pressure as regulators seem in lurking mode.

However, ETH was not left out of the picture. The SEC seemed resolute in its position to proscribe assets under the Proof-of-Stake (PoS) consensus as securities. But the CTFC had a different opinion about the cryptocurrency, as it called ETH a commodity in a statement made by Chairman Rostin Behnam.

— blockchain tipsheet (@blockchaintpsht) March 8, 2023

ETH’s self-custody ATH might come as a shock, as other cryptocurrencies, including Bitcoin [BTC], had recorded high numbers. One undeniable factor that could have impacted the rise was Vitalik Buterin’s response to the FTX issue last November.

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