Ethereum Whales Initiate Massive Sell-Off amid ETH Price Volatility
This price flunctuation has prompted some large investors, commonly referred to as “whales”, to initiate a substantial sell-off of their ETH holdings.
This price flunctuation has prompted some large investors, commonly referred to as “whales”, to initiate a substantial sell-off of their ETH holdings.
While it is not certain if the drop in the price of Bitcoin is caused by reduced investors’ appetite for spot ETFs, the decline is substantial as it marks a 6% reduction from its all-time high of its $73,628.
Despite approving spot Bitcoin ETFs in January, the SEC approaches Ether cautiously.
Bush and Sigel also projected that there is a high chance that L2 networks generate significantly bigger revenues than the base Ethereum network.
The delay by the US SEC on the VanEck spot Ether ETF coincides with reports about the agency investigating the Ethereum Foundation with claims of violating securities laws through its ICO.
Butterfill stated that since the launch of spot Bitcoin ETFs in the US, the average daily demand for Bitcoin has increased to 4500 on trading days, while only approximately 921 new Bitcoin are produced each day.
VanEck stated that Ethereum is a cash producing asset and thus its spot ETF could be more or equally successful to the Bitcoin ETFs.
Fortunately for VanEck, its decision to crash management fees to 0% until next year attracted record inflow for the company.
Despite a recent fee reduction, VanEck will begin a complete fee waiver from today until next year if HODL does not hit $1.5 billion in AUM.
The influx of investments into Bitcoin ETFs, culminating in a total of $563 million on March 4, signifies a robust institutional endorsement of cryptocurrency.