Ethereum Whale Withdraws $50M Ahead of Potential ETF Approval

UTC by Mayowa Adebajo · 2 min read
Ethereum Whale Withdraws $50M Ahead of Potential ETF Approval
Photo: Depositphotos

The Ethereum whale has just made a notable withdrawal of 16,449 ETH, approximately $50.3 million, from the Binance crypto exchange.

The price of Ethereum (ETH) has lately found some energy, surging to $3,100 as anticipation builds for the approval of the first-ever spot Ethereum ETF. Backing this bullish momentum is the increasing whale activity being witnessed across the board, suggesting that there is strong market confidence around the asset.

Ethereum Whale Moves 16,449 ETH from Binance

In one such instance, an Ethereum whale has just made a notable withdrawal of 16,449 ETH, approximately $50.3 million, from Binance crypto exchange. That is, according to on-chain data provider Spot On Chain, who noted that this was a first-of-its-kind accumulation by a new whale address. Spot On Chain also noted that the entire amount has been immediately transferred to a new wallet. This suggests that the wallet owner might be more interested in long-term holding rather than selling off for immediate profit.

Interestingly, the timing of this whale activity holds a strategic meaning. For context, it comes at a time when anticipation is in top gear for the approval of a spot Ethereum ETF, which might come as early as next week.

Market experts also have high hopes for this withdrawal. They believe it could be a bullish signal, as major accumulations such as this typically come before positive price action. That is because that much level of confidence being displayed by whales potentially influences other investors to follow suit, ultimately driving the ETH price higher.

Expectations amid Mixed Market Sentiment

Interestingly, there appears to be a mixed sentiment about ETH in the market. While this whale is accumulating, the decentralized computing platform Golem Network is doing the exact opposite, having been offloading its Ethereum holdings over the past week.

According to on-chain data, Golem has deposited a total of 29,000 ETH, worth nearly $90 million, to various crypto exchanges, including Binance, Bitfinex, and Coinbase.

For what it’s worth, the large-scale liquidation by Golem may just be an internal decision, one borne from strategic considerations. However, there is no denying that the actions also introduce some selling pressure in the short term.

Overall, the potential approval of the spot Ethereum ETF has been a major talking point within the crypto community. More so, since Katherine Dowling, Chief Compliance Officer of Bitwise, confirmed that the approval process might be nearing its conclusion. With issuers submitting their S-1 amendments, there is a strong expectation that the ETF could be approved as soon as next week.

Cryptocurrency News, Ethereum News, News
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