Last week, the SEC approved spot Ethereum ETFs, following Bitcoin ETFs. However, while the final approval was not yet received, investors started to prepare for the final approval.
At this point, the CryptoQuant analyst said that since the SEC approved spot Ethereum ETFs, more than 800,000 ETH worth approximately $3 billion have left crypto exchanges.
Pointing out that a similar situation occurred for BTC in January, the analyst thinks that ETHs issued from the stock exchanges were purchased by unknown persons or institutions.
The analyst said that behind the record outflow of 800 thousand Ethereum worth approximately $ 3 billion in 8 days, there may be whales or individuals who think that the price will increase after the ETF approval, or institutions preparing for the spot ETF.
Stating that this situation is a bullish signal for the ETH price, the analyst wrote:
“Following the approval of the Spot Ethereum ETF, there was an outflow of over 800,000 Ethereum from the exchanges. We saw similar situations after the approval of the Spot Bitcoin ETFs.
Following this groundbreaking ETH approval, unknown individuals or institutions withdrew 800 thousand Ethereum worth approximately $3 billion from exchanges within 8 days. We don't know who is behind these purchases.
Behind these purchases may be whales or individuals who think that the price will increase after the approval of the ETF, or institutions that are preparing for the approval of the ETF. These institutions may want to meet the demand of their investors with the launch of a spot ETH ETF.
“No matter who it is, we can expect that withdrawing this amount of Ethereum from exchanges will have a positive impact on the price in the medium term.”
SEC's Ethereum ETF Approval!
The SEC approved spot Ethereum ETFs on May 23. Prior to approval, the SEC began contacting potential issuers and later approved the companies' 19b-4 applications.
Despite this approval, trade in the products was not immediately allowed. S-1 filings must also be approved before the ETFs can begin trading, and analysts estimate the ETFs could begin trading in late June.
*This is not investment advice.