Ethereum: Should holders be worried as ICO participants move their ETH
- Ethereum whales offloaded their holdings. Impact on price remained minimal.
- Institutional interest in Ethereum remained high as Grayscale filed for another ETF.
In recent weeks, several significant Ethereum [ETH] whales have been steadily offloading their holdings, yet the impact on Ethereum’s price was minimal.
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The plot thickens
One Ethereum ICO participant, who remained dormant for eight years, recently made a noteworthy move by transferring 32.1 ETH to Coinbase.
This address had originally received 200 ETH during Ethereum’s Genesis, and upon further investigation, it appeared to be associated with shemnon.eth, an Ethereum Core Developer known for significant contributions to the Ethereum ecosystem.
The address received 200 $ETH at Ethereum Genesis.
— Lookonchain (@lookonchain) September 20, 2023
Another notable event involved a whale who initially participated in the ICO phase. This whale deposited 6,000 ETH, valued at nearly $10 million, into the Kraken exchange.
Remarkably, this whale acquired 254,908 ETH during the ICO at an approximate price of $0.31 per ETH, reflecting the early days of Ethereum.
This trend of ICO participants moving their holdings may cause shifts in sentiment among holders.
Impact on ETH
However, despite these substantial ETH movements, the cryptocurrency’s price remained relatively stable, trading at $1,623.16 at the time of writing.
This stability indicated a market that absorbed these large transfers without experiencing significant price fluctuations, showcasing the altcoin’s resilience.
However, such actions by ICO participants can potentially trigger Fear, Uncertainty, and Doubt (FUD) within the cryptocurrency community. Large transfers to exchanges can create concerns about market manipulation or bearish sentiment.
Institutional interest remains high
Interestingly, institutional interest in Ethereum did not wane. Grayscale, a prominent investment firm specializing in cryptocurrencies, recently filed for a new Ethereum futures exchange-traded fund (ETF).
This move surprised many in the crypto space, as Grayscale had previously submitted a filing for the same investment vehicle under a different regulatory act.
Realistic or not, here’s ETH’s market cap in BTC’s terms
The company’s new filing under the Securities Act of 1933 could be seen as a contingency plan in case its initial proposed ETH futures ETF faces SEC rejection.
The original ETF proposal is expected to launch in October, barring any denials from regulatory authorities. Grayscale’s proactive approach to offering an Ethereum-focused ETF indicated a strong belief in the altcoin’s long-term potential, despite short-term market fluctuations.