As the introduction of spot Ethereum ETFs in the US nears, focus shifts to its potential influence on Ether’s price direction in the upcoming weeks
An Ethereum whale has been observed withdrawing 16,449 Ether from Binance, estimated to be worth $50.3 million. The price of Ether rebounded over $3,000 during the time of this transaction.
According to Spot On Chain, an on-chain data provider, the whale’s activity represents their initial substantial accumulation of Ether, with the entire sum transferred to a new wallet.
Timing of withdrawal
The withdrawal’s timing is noteworthy, as the United States is anticipated to introduce spot Ether exchange-traded funds (ETFs) within the next week. Spot On Chain questioned whether the substantial transfer could serve as a bullish signal for Ethereum in their post on X.
Institutional interest and investment in Ether are anticipated to increase due to the introduction of an ETF, which could drive up its price.
On July 9, the price of Ether increased by 10.11% to $3,113, a sharp increase from the previous day’s minimum of approximately $2,830. The rally occurred concurrently with the publication of CoinShares’ weekly report, which indicated that Ether-linked investment funds received inflows of $10.2 million for the week ending July 5.
Revising Ether ETF registrations
To obtain approval in July and list and trade shares of a spot Ether ETF, asset management companies VanEck and 21Shares filed amended S-1 registrations with the US Securities and Exchange Commission on July 8.
Additionally, 21Shares submitted an updated form for its Core Ethereum ETF. The ETFs would be launched “as soon as practicable after the effective date” of the registration, although the filings do not specify a specific launch date for US exchanges.
In the interim, there has been a rise in competition among ETF sponsors in anticipation of the anticipated launch of spot Ether ETFs. In a filing to US regulators on July 9, Invesco and Galaxy established a 0.25% management fee for the Invesco Galaxy Ethereum ETF.
In May, the Securities and Exchange Commission (SEC) authorized listing Ethereum exchange-traded funds (ETFs).
Nevertheless, investors withdrew $61 million from Ether investment products between June 24 and 29, resulting in a total discharge of $119 million for the month’s end and a total balance of $37 million in funds withdrawn for June.