A significant Ethereum (ETH) whale, having amassed over $76 million in profit from investing in the second-largest cryptocurrency by market capitalization, has resumed accumulating more tokens amidst growing speculation surrounding the imminent trading of spot Ether exchange-traded funds (ETFs) in the United States.
Whale Moves: A $26 Million Ethereum Withdrawal Amidst Market Strategy
The "giant whale" recently withdrew 7,000 ETH, valued at over $26 million, from leading cryptocurrency exchange Binance at around $3,800 per coin. This move comes after the whale withdrew most of their ETH during the bear market last year, only to redeposit it back onto the exchange once the price surged.
Presently, the whale holds 36,785 ETH, valued at over $140 million, securing a profit of approximately $76.6 million.
ETH Surge: Spot ETF Approval Sparks Investor Frenzy and Whale Accumulation
The unexpected approval of spot Ether ETFs by the U.S. Securities and Exchange Commission last month sparked a surge in ETH's price, jumping over 25%. Investors anticipate a similar trend to the successful debut of US-listed spot Bitcoin ETFs in January, which rapidly accumulated billions in assets.
Whale accumulation has coincided with significant outflows from centralized cryptocurrency exchanges, with over 800,000 ETH worth around $3 billion moving off exchanges in little over a week. Analysts suggest institutions could be preparing for a spot Ethereum ETF by meeting potential investor demand.
Addressing the intensified whale accumulation, cryptocurrency intelligence firm IntoTheBlock noted that 41% of Ethereum's total circulating supply is now held by addresses with over 1% of its total supply, up from 36% earlier this year. This trend underscores the growing confidence in ETH among large holders.
The intensified whale accumulation and growing anticipation of spot Ether ETFs reflect a notable shift in market sentiment towards Ethereum. However, the concentration of supply among large addresses may raise concerns regarding market decentralization.