Bybit’s 11th Proof of Reserves Report: Ethereum Inflows Surge While Bitcoin Decreases Amid SEC’s 19b-4 Spot Ethereum ETF Approval
Over the course of a month, Bybit’s Ethereum reserves surged significantly, coinciding with the SEC’s approval of the 19b-4 filings for the spot Ethereum ETF.
- Bybit’s ETH reserves surged 30.52%, coinciding with the SEC’s spot Ethereum ETF 19b-4 approval.
- BTC and USDT holdings dropped by 5.59% and 8.83%, respectively, resulting in a net outflow of $250 million.
- Bybit’s last major ETH inflow was during the Shanghai hard fork in April 2023.
The 11th Bybit Proof of Reserves revealed a decline in Bitcoin and USDT holdings by 5.59% and 8.83%, respectively, while users amassed more Ethereum, resulting in an increase of 30.52%. This shift coincides with the long-anticipated SEC’s approval of the 19b-4 filings for the spot Ethereum ETF.
Compared to the 10th Proof of Reserves, Bybit also increased its ETH reserve ratio while offloading BTC and USDT. Bybit’s last significant ETH inflow was during the Shanghai fork of April 2023, leading to the question of what would happen if the SEC approves the Ethereum S-1 filings.
Inflow Differences for the Ethereum and Bitcoin Spot ETF
Bybit users significantly increased their Ethereum holdings by 30.52%, reaching a total of 456,894 ETH worth around $1.7 billion, revealed in its 11th Proof of Reserves. Although this increase was significant in percentage, it had minimal impact on inflow as more assets exited the exchange.
The exchange’s asset reserves still saw a net outflow of around $250 million, with the almost 100,000 ETH inflows not enough to cover BTC, USDT, and other outflows. This occurred despite an increase in its ETH reserve ratio by 4% and a decrease in its BTC and USDT reserve ratio by 2% each.
Unlike the spot Ethereum ETF, the SEC swiftly processed the S-1 filings for the spot Bitcoin ETFs, leading to their approval on January 10, 2024, and immediate listing.
During Bybit’s 8th to 9th Proof of Reserves reports, coinciding with the approval of Bitcoin’s spot ETF, the exchange’s BTC holdings increased by only a third of Ethereum’s growth, rising by approximately 4,000 BTC to a total of 44,916 BTC, marking a modest increase of 10.4%.
Bybit saw positive inflows of around $320 million during that period in contrast to the $250 million outflows despite the 19b-4 approval of the spot Ethereum ETFs.
The lack of impact may also be attributed to Bybit’s token holdings distribution: 37.03% in BTC, 23.25% in USDT, 10.03% in WETH, 4.01% in ETH, and 1.83% in STETH. According to its 11th Proof of Reserves, Bybit holds 48,795 BTC.
Bybit ETH Holdings and Significant
As seen on DeFiLlama, the last significant ETH inflow on Bybit occurred during the Shanghai hard fork, which enabled users to withdraw their staked Ether for the first time since the implementation of the proof-of-stake mechanism.
Despite only periodic spikes in ETH inflows, tokens built on the Ethereum network saw continuous growth, quadrupling since before 2023.
Bybit’s 11th Proof of Reserves report highlights shifting investor behavior in response to regulatory changes, such as the SEC’s approval of the spot Ethereum ETF. It remains to be seen whether the Ethereum S-1 approvals will result in significant ETH inflows for the crypto exchange.
