ETFs
Mega Whale Moves $50M Worth of Ethereum as Spot ETH ETFs Move Closer to Listing ⋆ ZyCrypto
As the cryptocurrency market awaits the regulatory green light for spot Ethereum exchange-traded funds (ETFs), analysts have spotted an Ether whale withdrawing 16,449 ETH worth around $50.3 million from the world’s largest exchange, Binance.
On-chain analytics firm Spot On Chain observed that the transfer marks the whale’s first massive accumulation of Ether, as the entire stockpile was moved to a new wallet address.
Do Ether Whales Accumulate?
The timing of the ETH whale withdrawal is significant, with spot Ether ETFs set to launch in the United States next week. Although the U.S. Securities and Exchange Commission (SEC) gave the regulatory green light As for the key filings for Ethereum spot ETFs in May, the regulator still needs to approve the S-1 registration forms of eight asset managers. Previously, SEC Chairman Gensler said the approval process depends on the asset managers’ ability to submit complete information.
In the X jobSpot On Chain suggested that the pullback is a bullish sign for Ethereum. Listings of ETH-based ETFs on U.S. exchanges are expected to boost institutional demand and investment in the second-largest cryptocurrency by market cap, potentially propelling its price higher. According to crypto insiders, spot Ether ETFs could attract up to $15 billion in admissions over the first 18 months of trading, roughly the same amount that Bitcoin spot ETFs have attracted since their launch in January.
This comes as asset management firms including 21Shares, Fidelity, Grayscale, VanEck, Bitwise, Invesco and Galaxy have all recently amended their S-1 filings with the SEC in the filings.
The SEC’s approval process for Ether ETFs has been slower than initially expected. James Seyffart, ETF analyst at Bloomberg rated on X (formerly known as Twitter), “We think these things could potentially be listed later next week or the week of the 15th at this point.”
Which ETF?
Notably, an Ether ETF fee war has started ahead of the planned launch of spot ETH ETFs. Invesco and Galaxy will charge users a 0.25% management fee on their proposed ETF. This is only slightly higher than VanEck’s 0.20%, which was disclosed last month.
Katherine Dowling, Bitwise’s chief compliance officer, notes that there is no specific timeline for ETH ETF approval. However, she notes that the products are “close to the finish line” as “fewer and fewer” issues in S-1 filings are being bounced between the SEC and potential ETF providers.
“We’re seeing in the S-1 amendments that there are fewer and fewer issues that are being reviewed in detail between issuers and the SEC,” Dowling said at a July 9 news conference. interview with Bloomberg.
“All this shows that we are close to the goal. We are close to the finish line of the launch.”
After losing about 20% of its value in the four weeks leading up to July 5, the price of ETH finally rebounded above the crucial $3,000 mark on Monday. At press time, Ether was worth $3,105, a gain of 1% on the day.