Behind Ethereums Surge: Heres How This Whale Is Taking Advantage Of The ETH Rally
In recent weeks, Ethereum has witnessed a noticeable uptick in its market price, reaching a one-month high and showcasing a growing demand for the asset. Amid this development, the on-chain analytics platform Lookonchain revealed an Ethereum whales noteworthy strategy, marking a bold stance on Ethereums future trajectory.
Strategic Accumulation Amid Rising Prices
According to Loookonchain, an unknown whale has been actively increasing their Ethereum holdings, utilizing the Spark platforms revolving loan feature. Spark platform is a decentralized finance (DeFi) product that enables users to borrow stablecoins like USDC or DAI against their cryptocurrency holdings.
This investor has managed to withdraw 39,900 ETH worth roughly $99.5 million from major exchanges such as Binance, Bybit, OKEx, and Bitfinex, leveraging the flexibility of revolving loans to boost their position in Ethereum.
Further insights from Lookonchain reveal that these withdrawals by the whale represent a continuous strategy rather than an isolated event. Since the start of the month, the whale has consistently been pulling out ETH, averaging a withdrawal price of $2,492, and has secured about 56.8 million DAI in loans from the Spark platform so far.
A whale is accumulating $ETH and going long $ETH by revolving loans on #Spark!
The whale has withdrawn 39.9K $ETH($99.5M) from #Binance, #Bybit, #OKEx and #Bitfinex since Feb 1 at an average price of $2,492, and borrowed 56.8M $DAI from #Spark.https://t.co/9EQSrwHnJD pic.twitter.com/6CydURt2pc
Lookonchain (@lookonchain) February 13, 2024
While bold, this strategy highlights the optimism surrounding Ethereums potential growth, especially in anticipation of the upcoming altcoin bull run and the expanding interest in Ethereum-based investment products like the spot exchange-traded funds (ETFs).
Spotlight On Ethereum Spot ETFs
While the United States Securities and Exchange Commission (SEC) is yet to disclose any latest update on the already filed applications of the spot Ethereum ETFs, asset manager Franklin Templeton has recently jumped on the spot ETH ETF queue.
A recent post by James Seyffart, an experienced analyst at Bloomberg Intelligence, highlights that Franklin Templeton has joined the ranks as the eighth firm in the cryptocurrency sector to apply for product authorization.
This follows submissions by other prominent asset managers for Ethereum ETFs, namely Hashdex, BlackRock, Fidelity, Ark and 21Shares, Grayscale, VanEck, Invesco, and Galaxy.
Heres the most recent table of other filers that I have pic.twitter.com/xCRRMwK76r
James Seyffart (@JSeyff) February 12, 2024
These developments come when Ethereum has sustained a positive momentum, closely tracking Bitcoins performance. The asset has witnessed more than 10% surge in the past week, maintaining this upward trend with an additional nearly 1% increase in the past 24 hours.
This price performance has elevated Ethereum to a current trading value of $2,614 as of this writing.
Featured image from Unsplash, Chart from Tradingview
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Source: NewsBTC.com
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