A major cryptocurrency investor, identified by their blockchain address 0x837, has sent shockwaves through the market by converting their entire PEPE holdings into Ethereum (ETH) over the past two days. This $18 million transaction signifies a potential shift in investor sentiment, with Ethereum poised to benefit from the anticipated launch of a spot ETF.
The whale’s activity indicates a well-calculated strategy. Over the past 48 hours, 0x837 meticulously accumulated 4,374 ETH (roughly $14.91 million) through multiple transactions on Binance. Notably, these Ethereum holdings were subsequently staked on the Compound protocol, suggesting the whale’s intent to generate passive income from their investment.
PEPE Sell-Off Reflects Market Shift
Prior to the Ethereum purchases, 0x837 deposited a staggering 1.4 trillion PEPE tokens (worth $14.42 million) on Binance. This move resulted in a significant loss of approximately $1.73 million for the whale, highlighting their strong conviction in Ethereum’s future potential. The market price of PEPE has also fallen by 2% in the last 24 hours, further reflecting a broader bearish sentiment towards the meme coin.
Ethereum Eyes Institutional Money Flood
The whale’s actions align with a growing optimism surrounding Ethereum, particularly with the prospect of a spot Ethereum ETF gaining approval from the Securities and Exchange Commission (SEC). This long-awaited event is expected to usher in a wave of institutional investment into the world’s second-largest cryptocurrency. Historical data from Bitcoin ETFs showcases a surge in demand for these digital assets once ETFs become available to institutional investors.
However, industry experts predict that inflows into Ether spot ETFs might be lower compared to their Bitcoin counterparts. Estimates suggest that Ethereum ETF inflows could be around 33% of what was witnessed with Bitcoin ETFs, ranging between 20% and 50%. This projection aligns with the current market capitalization difference between the two leading cryptocurrencies. While Ethereum enjoys strong investor interest, it may not yet match the unprecedented levels seen with Bitcoin.
Also Read: Green Light for Ethereum ETFs? SEC Makes Key Move, But Approval Isn’t Guaranteed Yet
Market Poised for Ethereum Breakout?
While PEPE experiences a bearish trend, Ethereum bulls are actively pushing the price back above the $3,500 resistance level. In the last 24 hours, ETH prices have fluctuated between a support and resistance of $3,363 and $3,402. At the time of writing, Ethereum bulls appear to be gaining control, with the price currently hovering around $3,381.
The strategic move by this prominent whale highlights the growing anticipation surrounding a spot Ethereum ETF. While the exact timeline for approval remains uncertain, the potential influx of institutional capital could propel Ethereum prices towards a significant breakout in the coming months.
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.
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