CryptoQuant analyst Burak Kesmeci speculates that these transactions could have been made by individual cryptocurrency whales or institutional investors.
According to Kesmeci, whales anticipate an increase in the price of ETH due to the possible approval of spot ETFs. At the same time, institutional investors could be preparing for the launch of these ETFs.
“These institutions will likely want to meet their investor demand with the launch of the Ethereum spot ETF,” Kesmeci commented. Despite the anonymity of these transactions, both parties appear to be influenced by market behavior following the approval of Bitcoin spot ETFs.
Transferring such a significant volume of ETH from exchanges suggests a preference for holding assets on self-custody platforms. This, in turn, tends to tighten supply conditions on cryptocurrency exchanges.
Kesmeci predicts that these withdrawals could have a positive impact on the price of Ethereum in the medium term. ETH declines on exchanges often indicate a future supply squeeze, which could drive prices higher as availability declines.
Ethereum ETFs
The preliminary approval of Ethereum spot ETFs has generated renewed optimism in the market and the crypto industry in general. BeInCrypto reported that some protocols in the Ethereum ecosystem, such as Aave and Uniswap, have seen an increase in total value locked (TVL) during this period.
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Bloomberg ETF analysts James Seyffart and Eric Balchunas have offered their perspective on the matter. They predict that Ethereum ETFs could capture between 10% and 20% of the flow recorded by Bitcoin ETFs. According to data from SoSo Value, Bitcoin spot ETFs have received a total net flow of $13.6 billion since their approval.
Seyffart and Balchunas anticipate final approval of Ethereum ETFs in July, suggesting the market could see even more significant moves in the coming months.
