Ethereum
$3B worth of ETH withdrawn from exchanges since Spot Ethereum ETF approval: CryptoQuant
More than 800,000 ether (ETH), worth around $3 billion, has left crypto exchanges since the U.S. Securities and Exchange Commission (SEC) approved the launch of exchange-traded funds ( Ethereum spot ETF).
According to a Quick take According to CryptoQuant analyst Burakkesmeci, the identity of the crypto investors behind the ETH movements remains unknown; however, there is speculation as to who they might be.
Over 800,000 ETH leaves exchanges
The second green light Ethereum spot ETFs for public listing on national securities exchanges on May 23, a surprising turn for the crypto industry. The agency began engaging with potential issuers days before the announcement and subsequently approved several 19b-4 applications to list the products.
Despite the approval, the products were not immediately cleared for marketing. The transmitters must submit their S-1 registration statements in the coming weeks before the ETFs can go live. Analysts suggest that the first wave of ETFs could be launched by the end of June.
As the crypto community awaits the ETF launch, the massive 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 moves in BTC after the SEC approved spot Bitcoin ETFs in mid-January.
According to Burakkesmeci’s analysis, ETH whales or individual investors could be behind the outflows as they believe the price of the cryptocurrency will increase due to the approvals. On the other hand, institutions and ETF issuers could take steps towards product launches. The CryptoQuant analyst said these entities could prepare to meet investors’ spot demand for Ethereum ETFs in the coming months.
A positive impact on ETH
Regardless of the investor cohort behind the outflows, Burakkesmeci expects such moves to trigger an ETH rally soon.
“The above answers are just a guess, but we can expect the removal of over 800,000 Ethereum from exchanges in 8 days to have a positive impact on the price in the medium term,” he said. he declares.
Analysts have predicted that ETH could explode to $20,000 after ETFs launch. At the time of writing, ETH was trading at around $3,800, up 1.1% in the last 24 hours. If the predictions come true, the market would see the crypto asset rise by over 420%.