Coinbase saw the largest Ethereum outflow of the year, totaling over 336,000 ETH, worth more than $1 billion on June 12th.
This marks the fifth instance in 2024 where over 150,000 ETH has been pulled from the crypto exchange in a single day. It is still unknown as to who is behind such a massive transfer of funds.
Coinbase’s Historic $1B Worth Ethereum Outflow
According to the latest findings by CryptoQuant, the magnitude of these transactions ranges from $400 million to $1.1 billion, suggesting that they are unlikely driven by individual investors. Instead, these movements are probably orchestrated by whales or unidentified institutions.
If these withdrawals are not internal shuffles within the exchange, they could signal a highly positive long-term outlook for the world’s largest altcoin.
CryptoQuant analyst also flagged similar activities on Coinbase before the trading of the spot Bitcoin ETFs began. As such, the withdrawal valued at $1.17 billion on June 12, 2024, could be influenced by whales or institutions anticipating an increase in Ether prices alongside the introduction of spot Ethereum ETFs.
“Whether this assumption is correct will become clear in the coming days. However, such movements that reduce the circulating supply (high demand) are expected to have a positive impact on the price in the medium to long term.”
All Eyes on Spot Ethereum ETF
With the US Securities and Exchange Commission’s (SEC) approval of spot Ethereum ETF, ETH-based investment products witnessed a substantial rebound last week, attracting $200 million in inflows. This was the second week of inflows, which reversed a 10-week outflow streak.
The degree of excitement around these investment vehicles is moderate, as evidenced by the recent traders’ positions. However, a K33 report shows that spot Ethereum ETFs could potentially rake in inflows of approximately $4 billion within the first five months of their launch.
The research firm also highlighted that since spot Bitcoin ETFs sparked a rally of more than 60% rally in bitcoin’s price Ethereum might experience a similar boost. Hence, K33 further added that Ethereum ETFs could potentially help the altcoin outperform the world’s largest digital asset.
