Ethereum Surpasses $2,000 Mark After BlackRock’s Spot ETH ETF Filing
Ethereum ($ETH) recently surpassed the $2,000 mark after BlackRock registered the iShares Ethereum Trust in Delaware, hinting at a potential spot Ethereum ETF in the United States. This move by the world’s largest asset manager fueled a surge in the price of ETH, which is currently trading close to $2,100 per token.
After this surge, a whale deposited 10,000 tokens onto leading cryptocurrency exchange Binance at a loss. The whale withdrew 123,000 ETH from cryptocurrency exchanges at an average price of $3,672 and then deposited 83,000 ETH worth over $186 million on exchanges at $2,246. This move is expected to result in a loss of approximately $116 million if sold at market prices.
Whale Waiting for Spot Ethereum ETF Listing
Despite this loss, the whale still has $74 million worth of ETH and could be waiting for a spot Ethereum ETF listing before making its next move. It’s worth noting that Ethereum futures ETFs have been traded in the US since last October but with somewhat lackluster trading volume.
Spot vs. Futures ETFs: What You Need to Know
A spot Bitcoin or Ethereum ETF directly holds Bitcoin or Ethereum as its underlying asset and is closely linked to the current market price of Bitcoin or Ethereum. Investors can benefit from price appreciation without buying or managing it themselves. On the other hand, a futures Bitcoin or Ethereum ETF invests in futures contracts and may have higher fees due to hedging against price fluctuations.
Hot Take: Will BlackRock’s Entry Fuel Ethereum’s Future Growth?
The recent registration of an iShares Ethereum Trust by BlackRock indicates growing institutional interest in cryptocurrency investments. The move has already fueled significant growth in Ethereum’s value and may continue to do so if a spot ETF listing is approved.
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