SEC's Ethereum ETF Approval: Implications and Market Response

On May 23, the Securities and Exchange Commission (SEC) officially approved spot Ethereum ETFs, a milestone event following the preceding approval of Bitcoin ETFs. Despite awaiting the final green light, market participants swiftly took action to prepare for the anticipated approval.

A CryptoQuant analyst highlighted the strategic move by investors following the SEC's approval of spot Ethereum ETFs. Over 800,000 ETH, valued at approximately $3 billion, made their way out of crypto exchanges in response to the regulatory green signal.

Comparing this trend to a previous occurrence with Bitcoin in January, the analyst speculated that the Ethereum exiting exchanges might have been acquired by undisclosed entities or institutions positioning themselves for the imminent ETF approval.

The notable 8-day period, during which a staggering 800,000 Ethereum worth $3 billion exited exchanges, raised the possibility of whales or individual investors foreseeing a price surge post-approval, along with institutions setting the stage for the spot ETF launch.

Viewing this substantial outflow as a positive signal for Ethereum's price trajectory, the analyst suggested that the movement of Ethereum from exchanges could have a favorable impact on the market in the medium term.