Altcoins
Crypto Whale Spends $25 Million on Ethereum Altcoins After SEC Clears Path for Spot Ether ETFs
A cryptocurrency whale spent nearly $25 million buying altcoins within the Ethereum ($ETH) ecosystem shortly after the U.S. Securities and Exchange Commission approved requests from major stock exchanges to list exchange-traded funds (ETF) Ether spot.
The whale’s accumulation was first noticed by chain analytics service Lookonchain, which pointed out that the whale used 26.67 million USDT tokens to acquire 8,733 ETH at $3,050 before the news broke.
The whale, after hearing that the SEC cleared the way for the listing of spot Ether ETFs in the US, purchased nearly $25 million worth of altcoins within the Ethereum ecosystem and is now reporting an unrealized gain of over 1 million dollars.
The whale deposited nearly 20 million USDt on leading cryptocurrency exchange Binance before withdrawing over 4 million LDOs worth $9.3 million, over 680,000 UNIs worth over $6.7 million, over 50,000 AAVE worth $5.4 million and other altcoins.
Before $ETH ETF news, a whale spent 26.67 million $USDT to purchase 8,733 $ETH at $3,054.56 and has an unrealized profit of ~$6 million.
After #SEC approved form 19b-4 for $ETH ETF, the whale bought a value of 24.7 million dollars #Ethereum ecosystem token and has an unrealized profit of ~$1.1 million.
He… pic.twitter.com/NYg2sYUpAi
—Lookonchain (@lookonchain) May 25, 2024
As CryptoGlobe reported, however, former SEC Chairman Jay Clayton said the regulator’s approval of 19b-4 filings for several Ether spot ETFs is just a initial stage of the approval process.
In his words, the second step involves the approval of the ETF issuer’s registration statement (e.g., Form S-1 or Form N-1A). The registration statement is a disclosure document that provides detailed information about the ETF, including its investment objectives, strategies, risks and fees.
The SEC reviews the registration statement to ensure that it complies with the Securities Act of 1933 and the Investment Company Act of 1940 and that it provides adequate disclosure to investors. If the SEC approves the registration statement, the ETF issuer can proceed with launching the product and making it available for trading on the approved exchange.
It is important to note that approval of the 19b-4 filing does not guarantee approval of the registration statement and vice versa. The ETF issuer must successfully pass both stages of the approval process before the ETF can be launched and traded on the market.
Featured image via Pixabay.