After approval of Ethereum spot ETF, large-scale ETH withdrawal from exchange… Who's behind it?

After approval of Ethereum spot ETF, large-scale ETH withdrawal from exchange… Who's behind it?

An on-chain data platform, said, “After the Ethereum spot exchange-traded fund (ETF) was approved, 800,000 ETH was withdrawn from cryptocurrency exchanges,” explaining this outflow. I mentioned the background.


According to CryptoPotato on the 3rd (local time), CryptoQuant analyst 'Burakkesmeci' said in a Quick Take on-chain analysis post, "After the approval of the Ethereum spot ETF, an unknown individual or institution made about 30% in 8 days. “800,000 ETH worth 100 million dollars were withdrawn from the exchange,” he said, adding, “Similar movements were observed even after the approval of the Bitcoin spot ETF.”

On May 23, the SEC approved listing the Ethereum spot ETF on the stock exchange. Despite the approval, the product was not immediately approved for trading. Issuers must file an 'S-1' registration statement in the coming weeks before the ETF can become active. Analysts estimate that the first wave of ETFs will begin around the end of June.

While the cryptocurrency community waits for the launch of ETFs, exchanges have recently seen large ETH outflows. The identity of the cryptocurrency investor behind the ETH move is unknown, but there is speculation as to who they could be.

Analyst Burackesmeci noted that retail investors or institutions could be behind the outflow, saying the market saw similar BTC movements after the SEC approved the Spot Bitcoin ETF in mid-January.

He offered two speculations and expressed the view that whales or individual investors who thought the price would rise after the approval of the Ethereum spot ETF could be behind it. He also diagnosed that institutions issuing Ethereum spot ETFs, hoping to meet investor demand through the launch of Ethereum spot ETFs, may be behind the massive fund outflow that lasted eight days.

Regardless of the group of investors behind the outflow, he expects this move to trigger ETH gains soon. “The answers above are all assumptions, but the withdrawal of more than 800,000 Ethereum from exchanges in eight days can be expected to have a positive impact on the price in the medium term,” Burackesmeci said.

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