In the volatile world of cryptocurrency, investor confidence is often gauged by the willingness to hold assets through market fluctuations. Recently, Ethereum has seen a strong vote of confidence from its community, marked by a record number of long-term holders. These HODLers are crucial to Ethereum’s future.

Long-Term Holders on the Rise

According to Glassnode data, a significant portion of Ethereum is held for periods ranging from one to three years. This indicates that much of the Ethereum acquired during the 2021-2022 period is still being held. This trend is further supported by the decrease in the proportion of crypto held for less than six months, while the share held for more than seven years has increased. This reflects the stability and faith in Ethereum’s fundamental value and its potential for future growth.

The Ethereum HODL Waves chart illustrates the distribution of Ethereum held over various periods, revealing changing trends in investor behavior. The recent surge in long-term holders suggests strong conviction in Ethereum’s long-term value, with many investors choosing to hold their assets rather than sell during market fluctuations.

The Influence of Long-Term Holders

Long-term Ethereum holders play a crucial role in stabilizing and growing the cryptocurrency. By holding their assets, they reduce volatility and create a sense of confidence that attracts new investors. Their long-term vision also encourages the development of innovative projects on the Ethereum blockchain, fostering a richer and more diverse ecosystem.

This HODLing strategy can positively influence Ethereum’s future, positioning it as a leading digital currency with increased global adoption and usage. However, it is important to note that cryptocurrencies remain high-risk investments, and market conditions can change rapidly.

The behavior of long-term Ethereum holders indicates a strong belief in the crypto’s potential. Their strategy suggests Ethereum is maturing as an investment asset, with promising prospects for future growth.

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The U.S. Securities and Exchange Commission has concluded its investigation into Ethereum 2.0, according to a late Tuesday announcement by cryptocurrency firm ConsenSys on social media platform X. ConsenSys had previously filed a lawsuit seeking an injunction against the SEC’s regulation of the Ethereum blockchain.

ConsenSys founder Joseph Lubin hailed the SEC’s decision as “a significant victory” for Ethereum. “While we welcome this development, it’s not enough. We must remain vigilant and continue advocating for clear and fair regulations that enable innovation to flourish,” Lubin, who also co-founded the cryptocurrency Ether, stated on X.

Despite the SEC’s decision, ConsenSys plans to continue its lawsuit to seek a court ruling that the SEC lacks legal authority to regulate the user-controlled software interfaces built on Ethereum or the Ethereum blockchain itself.

An SEC spokesperson declined to comment on the existence or nonexistence of a possible investigation.

Last month, the SEC approved applications from Nasdaq, CBOE, and NYSE to list spot Ether ETFs, a surprising win for the cryptocurrency industry, which had anticipated rejections.

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Marathon Digital Holdings (NASDAQ:MARA) has integrated its multi-chain layer-2 network, Anduro, with the decentralized exchange network Portal to Bitcoin. This integration aims to enhance the utility of the Bitcoin network by enabling atomic swaps, which allow for peer-to-peer transactions of cryptocurrencies across different blockchains.

Marathon, a publicly-traded bitcoin miner, began incubating Anduro in February, describing it as “a platform built on the Bitcoin network that allows for the creation of multiple sidechains.” The integration with the San Francisco-based fintech provider and subsequent renaming to Portal to Bitcoin was announced in an email shared with CoinDesk on Wednesday.

Previously known as Portal, the company raised $34 million in a seed round in March. It leverages the Bitcoin layer-2 network Lightning to facilitate atomic swaps, enabling users to convert assets like Ethereum (ETH) into Bitcoin (BTC).

This development brings greater utility to Bitcoin, a feature common among Ethereum-based assets and other blockchains but relatively new to Bitcoin. Anduro’s integration with Portal to Bitcoin may also offer new revenue streams for miners. By using merge-mining, participating miners can earn Bitcoin-denominated revenue from transactions on these sidechains while continuing to mine Bitcoin on the base layer.

“Integrating Portal to Bitcoin enhances the utility of Bitcoin and presents new opportunities for revenue generation for miners,” said a Marathon spokesperson.

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Hashdex has submitted a proposal to the Securities and Exchange Commission to create an exchange-traded fund that would include both Bitcoin (BTC) and Ethereum (ETH). The proposed ETF, named Hashdex Nasdaq Crypto Index US ETF, aims to offer investors exposure to the two leading cryptocurrencies, reflecting their distribution in the Nasdaq Crypto Index.

The ETF would be composed of approximately 70.54% Bitcoin and 29.46% Ethereum, adhering to a market-cap-weighted strategy that mirrors the broader cryptocurrency market as represented by the Nasdaq Crypto Index.

This initiative marks a significant advancement in integrating digital assets into conventional financial instruments, potentially broadening the accessibility of cryptocurrencies to a wider range of investors. The fund will be backed by custodians Coinbase (NASDAQ:COIN) Custody Trust Company and BitGo Trust Company and will maintain cash reserves.

While initially focusing on Bitcoin and Ethereum, the ETF may consider including additional digital assets in the future, pending SEC approval. This proposal arrives during a favorable regulatory climate, following the SEC’s approval of Bitcoin spot ETFs and the anticipated introduction of Ethereum ETFs in the U.S. market.

SEC Chair Gary Gensler recently indicated to a Senate committee that Ethereum ETFs might begin trading by this summer.

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Jump Crypto has added $10 million to a U.S. political action committee focused on promoting pro-crypto candidates in Congress. This brings the total contributions from Jump, a Chicago-based investment firm, to $15 million, and raises the PAC’s total funds to nearly $169 million as of Wednesday, according to spokesman Josh Vlasto.

The significant fundraising effort by Fairshake and its affiliated PACs has positioned the crypto industry with one of the most influential campaign-finance operations for the 2024 elections. These super PACs have been heavily investing in primary campaigns, helping their preferred candidates advance toward likely general-election victories in November.

“The crypto and blockchain communities have united to form a sustainable bipartisan coalition and an effective long-term operation,” Vlasto stated. “We will continue to support candidates committed to responsible regulation that drives innovation, creates jobs, and maintains America’s global leadership.”

A spokeswoman for Jump Crypto declined to comment on the donation. This substantial contribution follows recent matching $25-million donations from major crypto firms Coinbase Inc. (NASDAQ:COIN), Ripple, and Andreessen Horowitz.

As of the May 31 Federal Election Commission filing, Fairshake and its related PACs—Defend American Jobs and Protect Progress—held $109 million. With less than five months until the final voting, Vlasto confirmed the PACs do not plan to support presidential candidates, instead focusing on proven congressional incumbents and crypto-friendly candidates.

Recent votes in Congress have provided clearer indicators of lawmakers’ stances on crypto. In May, the House passed the Financial Innovation and Technology for the 21st Century Act, the first comprehensive crypto oversight legislation to clear either chamber. Its future in the Senate remains uncertain, but the vote revealed which House members support crypto regulations.

Additionally, both chambers voted to overturn the Securities and Exchange Commission’s crypto account policy, Staff Accounting Bulletin No. 12. Although President Joe Biden vetoed this effort, it showed 11 Senate Democrats joining Republicans against the SEC policy and the White House’s stance.

These votes demonstrated unexpected support from Democrats and are being used to evaluate lawmakers. Stand With Crypto, an advocacy group started by Coinbase, uses a grading system to rate politicians. For example, Sen. Mark Warner received a “D” grade for his no vote on the SAB 121 resolution, while Sen. Chuck Grassley earned a “B” grade for supporting it.

“Recent votes have helped us educate our advocates on politicians’ positions on crypto,” said Sabrina Siddiqui, a spokesman for Stand With Crypto. She noted that the group reached over a million online members earlier than expected due to strong interest in these key votes.

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