Ethereum Sets New Record After SEC Approval: 800,000 ETH Worth $3 Billion Purchased! Who Are the Buyers?
In a significant development, the SEC recently approved spot Ethereum ETFs, following the approval of Bitcoin ETFs. Although the final approval is still pending, investors have wasted no time in preparing for it.
According to the CryptoQuant analyst, more than 800,000 ETH, valued at approximately $3 billion, have been withdrawn from crypto exchanges since the SEC’s approval of spot Ethereum ETFs. This phenomenon is reminiscent of a similar situation that occurred with BTC in January. The analyst speculates that the ETH withdrawn from exchanges has been bought by unknown individuals or institutions.
The analyst further suggests that behind the record outflow of 800,000 Ethereum, there may be whales or individuals who anticipate a price increase after the ETF approval, or institutions that are gearing up for the launch of spot ETFs.
This bullish signal for the ETH price indicates that the approval of the Spot Ethereum ETF has prompted the withdrawal of over 800,000 ETH from exchanges. This pattern was observed following the approval of Spot Bitcoin ETFs as well.
Within just 8 days of this groundbreaking ETH approval, unknown individuals or institutions have withdrawn 800,000 Ethereum, amounting to approximately $3 billion, from exchanges. The identity of these buyers remains unknown.
It is speculated that these purchases may have been made by whales or individuals who believe that the ETF approval will drive up the price. Additionally, institutions preparing for the ETF approval may be seeking to meet the demands of their investors with the introduction of a spot ETH ETF.
Regardless of the buyers’ identities, it is expected that the withdrawal of such a substantial amount of Ethereum from exchanges will have a positive impact on the price in the medium term.
SEC’s Approval of Ethereum ETFs!
On May 23, the SEC granted approval for spot Ethereum ETFs. Prior to this approval, the SEC reached out to potential issuers and subsequently approved their 19b-4 applications.
While the approval has been granted, trading of these products is not yet permitted. S-1 filings must also be approved before the ETFs can commence trading, and analysts estimate that trading may begin in late June.
In related news, Standard Chartered has predicted that Bitcoin will reach $150,000 and Ethereum will reach $8,000 by 2025. The company has also pointed to the possibility of Solana and XRP ETFs in the future.
Please note that this article does not constitute investment advice.
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