Ethereum Whales Revitalized While the Critical SEC Decision Is Waiting!

The Ethereum community is holding its breath today, May 23, 2024, as the U.S. Securities and Exchange Commission (SEC)’s highly anticipated decision on the VanEck Spot Ether ETF application approaches. This decision has the potential to significantly impact the world’s second-largest cryptocurrency in terms of market capitalization.

Whale activity boosts optimism

The exact timing of the SEC’s announcement remains shrouded in secrecy. Eric Balchunas, one of Bloomberg’s ETF analysts, expressed his prediction on the subject. “My best guess is we will hear from the SEC tomorrow around 4 p.m. They broke the spot BTC news at 15.45, whereas in the past they gave some news a little after 16.00. Anything is possible, though.” said. If we adapt the times mentioned by Balchunas to Türkiye’s time zone, the analyst is talking about around 23.00 GMT.

Meanwhile, the latest buying spree of Ethereum whale James Fickel, founder of the Amaranth Foundation, has also added fuel to the fire. Known for his early bets on Ethereum, Fickel has aggressively accumulated a total of 14,494 ETH (approximately $53.3 million) over the past three days, demonstrating his bullish stance on the cryptocurrency, especially in light of the upcoming SEC decision. This reflects the sentiment of many investors who are positioning themselves to benefit from a potential ETF approval.

Potential price increase possibility

Analysts at Bernstein, Gautam Chhugani, and Mahika Sapra predict a potential 75% increase in Ethereum price if the Spot ETF is approved. They parallel the SEC’s approval of Bitcoin ETFs in January, which caused a similar price increase for Bitcoin. An ETF would significantly increase Ethereum’s accessibility to institutional investors and potentially fuel long-term price growth.

But not everyone shares this unbridled optimism. Financial analyst Charles Gasparino warns of potential delays or even rejections due to ongoing regulatory hurdles. The approval process itself is multi-layered and requires separate approvals from the SEC’s Trading and Markets (T&M) division and Corporate Finance (Corp Fin) or Investment Management (Inv Mgmt), depending on the issue structure. Only T&M approval has a fixed deadline, meaning possible delays in final issuance even if the initial hurdle is cleared.

Ethereum co-founder profits

The news that Ethereum co-founder Jeffrey Wilcke has converted some of his holdings into cash adds another layer. Data reveals that 10,000 ETH (approximately $37.38 million) was recently transferred to cryptocurrency exchange Kraken. Although Wilcke still holds a significant ETH portfolio, this move suggests some profit-taking amid the current price increase.