tl;dr
A major crypto whale recently sold $46 million worth of Ethereum (ETH) on the Kraken exchange, sparking interest ahead of the US Securities and Exchange Commission's (SEC) decision on spot Ethereum exchange-traded funds (ETFs). The whale, identified by the wallet address 0x7f1, is estimated to have ...
A major crypto whale recently sold $46 million worth of Ethereum (ETH) on the Kraken exchange, sparking interest ahead of the US Securities and Exchange Commission's (SEC) decision on spot Ethereum exchange-traded funds (ETFs). The whale, identified by the wallet address 0x7f1, is estimated to have made a profit of $172.4 million from ETH transactions. Meanwhile, long-term Ethereum holders have shown signs of selling, coinciding with the upcoming SEC ruling.
According to the on-chain analysis platform Spot On Chain, the crypto whale deposited 15,000 ETH (~$46 million) to Kraken at $3,065 each on May 20. This transaction marks the first time this whale has moved such a significant amount to Kraken.
This development occurs as long-term Ethereum holders show signs of selling. Ethereum has surged by over 9% from last week’s lows, and crypto whales must have capitalized on the price surge. BeInCrypto recently reported that another notable Ethereum investor, known by the wallet address 0x2ce, transferred 4,153 ETH, worth about $12.17 million, to Coinbase. Moreover, data from Glassnode, an on-chain analysis platform, reveals a 15% decline in the total supply of ETH that had remained unmoved for five to seven years. Specifically, this metric dropped from 11.6 million ETH in late February to the current 9.8 million ETH.
On May 23, the SEC is expected to announce its ruling on VanEck’s spot Ethereum ETF. The regulatory agency’s cautious stance reflects the broader challenges within the crypto market. Jan van Eck, CEO of VanEck, expressed skepticism regarding the SEC’s approval of spot Ethereum ETFs. During an interview at the Paris Blockchain Week, he mentioned that VanEck and Ark Invest’s applications might face rejection.
Moreover, Bloomberg’s senior ETF analyst Eric Balchunas estimates less than a 35% chance of SEC approval for Ethereum ETFs. Similarly, bets on Polymarket place the likelihood at just 10%. The SEC’s recent delay of BlackRock’s Ethereum ETF application, seeking public input on fraud and manipulation concerns, further highlights the regulatory complexities.
The transition to a Proof-of-Stake (PoS) consensus mechanism has added layers of scrutiny. The SEC questions whether Ethereum now meets the Howey Test criteria for security. As the market eagerly awaits the SEC’s decision, the actions of significant Ethereum holders and the broader regulatory environment will undoubtedly shape the crypto industry in the coming months.