Large Ethereum holders from the Initial Coin Offering (ICO) era are making waves, transferring a combined 3,631 ETH (around $12.5 million) to Kraken in the last two days. This activity coincides with the highly anticipated approval of the first spot Ethereum ETF, expected on July 23rd.
On-chain data provider Spot On Chain identified the wallets involved as 0xdb3 and 0xbf5. Wallet 0xdb3, in particular, has been on the move since June 8th, depositing a significant 17,886 ETH (roughly $65 million) to various centralized exchanges. This wallet has a history of receiving funds from the Ethereum Foundation and a prominent ICO participant (0xAb0).
Analysts speculate on the reasons behind these movements. The impending launch of the Ether ETF could be a major driver. With increased institutional interest expected upon approval, these whales might be positioning themselves to capitalize on potential price surges.
However, the road to a full-blown bull run might be bumpy. The surge in implied volatility for near-term Ethereum contracts suggests market jitters. Experts predict a “sell the news” event before the real price rally takes hold. This means investors should be prepared for some short-term price swings.
Also Read: Bitcoin Back in Favor: BlackRock Leads Record-Breaking $422.5M Inflow Day For US Spot Bitcoin ETFs
The news also highlights the growing importance of on-chain data analysis. By tracking wallet movements, analysts can glean valuable insights into investor sentiment and potential market shifts. This information can be crucial for informed decision-making in the fast-paced world of cryptocurrency.
In conclusion, the movement of large amounts of ETH by ICO-era wallets to Kraken underscores the excitement surrounding the upcoming Ether ETF. While the short-term price outlook remains uncertain, the long-term prospects for Ethereum appear bright.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
