Crypto News

Whale Activity Surges Amid Ethereum ETF Approval Anticipation

Bloomberg ETF analyst James Seyffart has forecasted that demand for spot Ethereum ETFs could reach 20% to 25% of that for Bitcoin ETFs. This prediction stems from Ethereum’s market size, which is roughly 30% that of Bitcoin.

However, Ethereum ETFs have limitations, including the inability to stake and leverage on-chain utility.

On May 21st, Ethereum recorded an on-chain trading volume of $15.98 billion, the highest since June 13th, 2022. This significant volume coincided with bullish sentiment driven by the anticipation of Ethereum ETFs.

Before the Ethereum ETF news broke, a whale made a notable move by spending 26.67 million USDT to purchase 8,733 ETH at $3,054.56 per token, resulting in an unrealized profit of approximately $6 million, according to Lookonchain. This aggressive accumulation signaled strong confidence in Ethereum’s future prospects.

Whale Buys Multiple Ethereum Ecosystem Tokens Worth $24.7 Million

Following the SEC’s approval of Form 19b-4 for Ethereum ETFs, this whale continued their buying spree, acquiring $24.7 million worth of various Ethereum ecosystem tokens, amassing an additional unrealized profit of $1.1 million. 

Specifically, they deposited 19.75 million USDT to Binance and withdrew significant amounts of multiple tokens: 4.04 million LDO ($9.3 million), 684,364 UNI ($6.7 million), 52,623 AAVE ($5.4 million), 82,041 ENS ($2 million), and 250,969 FXS ($1.25 million).

These strategic transactions highlight a strong belief in Ethereum’s potential, especially with the upcoming ETFs expected to attract more institutional interest. However, the inability to utilize staking and on-chain functionalities remains a notable drawback for Ethereum ETFs.

In summary, Ethereum’s recent trading activities, combined with whale movements and ETF approvals, paint a promising yet cautious picture for the cryptocurrency’s future. The market awaits further developments to gauge the full impact of these ETFs on Ethereum’s long-term performance.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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