The global digital assets market recently witnessed a major validation from the primary US financial overseer regarding the trading of spot Ether Exchange Traded Funds (ETFs). Subsequent to this approval, data indicates an outflow of over 800,000 Ethereum (ETH) from various exchanges.

Unveiling the Ether Buyers

According to data provided by Cryptoquant, following the approval of the Ethereum Spot ETF, numerous undisclosed entities withdrew more than 800K Ethereum from exchanges. The total value of these withdrawals reached approximately $3 billion in just 8 days. The identities behind these acquisitions remain veiled.

Industry experts foresee parallel scenarios following the approval of the Bitcoin Spot ETF.

The price of Ethereum has been on an upward trajectory since the ETF news. ETH has surged by 28% in the last 30 days and is on track to reclaim the critical $4,000 price level. Consequently, the second-largest cryptocurrency has experienced a 67% increase year-to-date (YTD).

Ether encountered a minor setback of approximately 3% in the past week, currently trading at an average price of $3,826. Despite this, it is still down by 21% from its all-time high (ATH) of $4,891 achieved on November 16, 2021. The 24-hour trading volume has also escalated by 21% to $11.8 billion.

Reports suggest that whales or entities foreseeing a price surge post the Spot ETF approval could be driving this trend. It is proposed that institutions gearing up for the Spot ETF launch may be behind this prolonged outflow lasting for 8 days. Noteworthy is that these institutions might aim to cater to the increasing demand from their investors through the launch of the ETH Spot ETF.

SEC in Focus

The US Securities and Exchange Commission has laid the groundwork for the potential introduction of eight investment avenues. This marks the second major agreement this year, following the regulator's endorsement of the initial bitcoin ETFs.

Notable players including BlackRock, Fidelity, Invesco, and Ark Invest sought approval for these endeavors. However, subsequent approvals are essential before the actual launch of these products.

The mounting anticipation surrounding the approvals resulted in a surge of over 20% in the price of the largest altcoin on the day of the announcement. Jan van Eck, CEO of VanEck, perceives a significant shift in market sentiment tied to the approval of a rule change by the US.