Ethereum
This is why Crypto Whale sold $46 million in Ethereum
A massive crypto whale recently unloaded $46 million worth of Ethereum (ETH) amid a critical period for the crypto market.
This transaction has garnered considerable attention as the market anticipates the U.S. Securities and Exchange Commission’s (SEC) decision regarding Ethereum exchange-traded funds (ETFs).
Crypto Whales Cash in on Ethereum
According to on-chain analysis Spot On Chain platform, the crypto whale, identified by the wallet address 0x7f1, deposited 15,000 ETH (~$46 million) to Kraken at $3,065 each on May 20. This transaction marks the first time that this whale has transferred such a large sum to Kraken.
“Notably, the whale is currently earning a huge total profit estimated at $172.4 million (+86.7%) from ETH,” Spot On Chain mentioned.
This profit stems from strategic moves including the withdrawal of 120,874 ETH from Kraken at an average cost of $1,645 per ETH in September 2022. With the recent deposit, the whale’s remaining Ethereum holdings stand at 105,874 ETH, valued at approximately $327 million.
Learn more: Ethereum (ETH) Price Prediction 2024/2025/2030
Crypto Whale Wallet. Source: Spot on the channel
This evolution occurs as Long-Term Ethereum Holders Show Signs of Selling. Ethereum surged more than 9% from last week’s lows, and crypto whales must have benefited from the price surge.
BeInCrypto recently reported that another notable Ethereum investor, known by the wallet address 0x2ce, transferred 4,153 ETH, worth approximately $12.17 million, to Coinbase.
Moreover, data from Glassnode, an on-chain analytics platform, reveals a 15% drop in total ETH supply that has remained unchanged for five to seven years. Specifically, this metric increased from 11.6 million ETH at the end of February to 9.8 million ETH currently.
The timing of these transactions coincides with the imminent SEC Decision on Ethereum Spot ETFs. On May 23, the SEC is expected to announce its decision on VanEck’s Ethereum Spot ETF.
The regulatory agency’s cautious stance reflects broader challenges in the crypto market. Jan van Eck, VanEck CEO expressed skepticism regarding the SEC’s approval of Ethereum spot ETFs. During an interview at Paris Blockchain Week, he mentioned that the applications of VanEck and Ark Invest could be rejected.
“The way the legal process works is that regulators will give you feedback on your application, and that happened weeks and weeks before Bitcoin ETFs – and right now the pins are falling when it comes to Ethereum “, van Eck explain.
Additionally, Eric Balchunas, senior ETF analyst at Bloomberg, estimates that there is less than a 35% chance that the SEC will approve Ethereum ETFs. Likewise, betting on Polymarket places the probability at just 10%.
Learn more: Ethereum ETF explained: what it is and how it works
The SEC’s recent delay BlackRock Ethereum ETF App, seeking public input on issues of fraud and manipulation, further highlights the complexity of regulation. The transition to a Proof of Stake The consensus mechanism (PoS) added additional levels of control. THE SEC questions whether Ethereum now meets the Howey test criteria for security.
As the market eagerly awaits the SEC’s decision, the actions of major Ethereum holders and the broader regulatory environment will undoubtedly shape the crypto industry in the months to come.
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