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This is why Crypto Whale sold $46 million worth of Ethereum
A massive crypto whale recently unloaded $46 million worth of Ethereum (ETH) amid a critical period for the crypto market.
This transaction has sparked considerable attention as the market anticipates the U.S. Securities and Exchange Commission’s (SEC) ruling on Ethereum exchange-traded funds (ETFs).
Crypto whales cash out on Ethereum
According to on-chain analysis Spot On Chain platform, the crypto whale, identified by portfolio address 0x7f1, deposited 15,000 ETH (~$46 million) to Kraken for $3,065 each on May 20. This transaction marks the first time this whale has transferred such a significant amount to Kraken.
“Notably, the whale is currently making a massive estimated total profit of $172.4 million (+86.7%) from ETH,” Spot On Chain mentioned.
This profit stems from strategic moves, including withdrawing 120,874 ETH from Kraken at an average cost of $1,645 per ETH in September 2022. With the recent deposit, the whale’s remaining Ethereum holdings stand at 105,874 ETH, valued at approx. US$327 million.
See more information: Ethereum (ETH) Price Prediction 2024/2025/2030
Crypto Whale Portfolio. Source: Location in jail
This development occurs as Long-term Ethereum holders show signs of selling. Ethereum is up more than 9% from last week’s lows, and crypto whales must have capitalized on the price increase.
BeInCrypto recently reported that another notable Ethereum investor, known by the wallet address 0x2ce, transferred 4,153 ETH, worth around $12.17 million, to Coinbase.
Furthermore, data from Glassnode, an on-chain analytics platform, reveals a 15% decline in total ETH supply that has remained unchanged for five to seven years. Specifically, this metric has dropped from 11.6 million ETH at the end of February to the current 9.8 million ETH.
The timing of these transactions coincides with the imminent SEC Ruling on Spot Ethereum ETFs. On May 23, the SEC is expected to announce its decision on VanEck’s spot Ethereum ETF.
The regulatory agency’s cautious stance reflects the crypto market’s broader challenges. Jan van Eck, VanEck CEO expressed skepticism regarding SEC approval of spot Ethereum ETFs. During an interview at Paris Blockchain Week, he mentioned that applications from VanEck and Ark Invest may face rejection.
“The way the legal process works is that regulators will provide feedback on your application, and this happened weeks and weeks before Bitcoin ETFs – and now, the pins are dropping as far as Ethereum is concerned,” van Eck explained.
Additionally, Bloomberg senior ETF analyst Eric Balchunas estimates less than a 35% chance of SEC approval for Ethereum ETFs. Likewise, Polymarket bets put the probability at just 10%.
See more information: Ethereum ETF explained: what it is and how it works
The SEC’s recent delay in BlackRock’s Ethereum ETF Application, which seeks public input on issues of fraud and manipulation, further highlights regulatory complexities. The transition to a Proof of Stake The consensus mechanism (PoS) has added layers of scrutiny. O SEC questions whether Ethereum now meets the Howey Test criteria for security.
While the market anxiously awaits the SEC’s decision, the actions of significant Ethereum holders and the broader regulatory environment will undoubtedly shape the crypto industry in the coming months.
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