More than 800,000 ether (eth) worth around $3 billion have left crypto exchanges since the US Securities and Exchange Commission (SEC) approved the launch of spot exchange-traded funds (ETFs) of ethereum.
According to aethereum-Outflow-From-Exchanges-Following-eth-Spot-ETF-Approval?utm_source=telegram&utm_medium=sns&utm_campaign=quicktake&utm_content=burakkesmeci” data-wpel-link=”external” target=”_blank”> quick take According to CryptoQuant analyst Burakkesmeci, the identities of the cryptocurrency investors behind eth movements remain unknown; however, there is speculation as to who they might be.
More than 800,000 eth leave exchanges
The SEC gave the green light to ethereum spot ETFs for public listing on national stock exchanges on May 23 in a surprising turn for the crypto industry. The agency began engaging with potential issuers a few days before the announcement and approved multiple 19b-4 applications to subsequently list the products.
Despite the approval, the products were not immediately authorized for marketing. Issuers must file their S-1 registration statements in the coming weeks before the ETFs can go live. Analysts suggest the first wave of ETFs could launch as early as the end of June.
As the crypto community awaits the launch of the ETF, the large outflow of eth from exchanges over the past week is raising concerns. Burakkesmeci said individual investors or institutions could be behind the outflows, noting that the market witnessed similar btc moves after the SEC approved bitcoin spot ETFs in mid-January.
According to Burakkesmeci's analysis, eth whales or individual investors could be behind the outflows because they believe that the price of the cryptocurrency will increase due to the approvals. On the other hand, institutions and ETF issuers could be taking steps in preparation for the launch of the products. The CryptoQuant analyst said these entities may be preparing to meet spot demand for ethereum ETFs from investors in the coming months.
A positive impact on eth
Regardless of the cohort of investors behind the outflows, Burakkesmeci expects such moves to trigger an eth rally soon.
“The answers above are each an assumption, but we can expect that the withdrawal of more than 800,000 ethereum from exchanges in 8 days will have a positive impact on the price in the medium term,” he stated.
Analysts have predicted that eth could explode to $20,000 following the launch of the ETFs. At the time of writing, eth was trading at around $3,800, up 1.1% in the last 24 hours. If the predictions came true, the market would see an increase of over 420% in crypto assets.
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