<b>Ethereum and Bitcoin Holders Show Divergent Strategies Amid Rally</b>

The recent rally in Bitcoin (BTC) and Ethereum (ETH) has led to a divergence in how their holders are responding. While BTC owners have left their coins on exchanges, ETH holders have been pulling theirs off. According to data from Santiment, ETH's exchange balances fell by 18% between June 3 and August 27, from approximately 7.69 million coins to 6.28 million.

This drop in tradable supply has accelerated since the rally began, with an additional 275,000 coins moved off exchanges after August 19. Meanwhile, BTC balances rose by 0.25% over the same period, and Santiment notes that current BTC holdings on exchanges are near the upper end of their recent range.

The data also shows that ETH's price rose roughly 27% between August 16 and August 27, while its holders were withdrawing coins from exchanges. This suggests that they took advantage of the rising market to move their assets off exchanges. In contrast, BTC owners have left their coins on exchanges during this time.

The divergence is also reflected in fund flows, with US spot Ethereum ETFs netting $1.633 billion across 60 trading sessions, compared to $173 million for Bitcoin funds. This gap is significant, and it will be interesting to see if the inventory gap holds in September's flow data.