On June 12th, Coinbase witnessed the largest Ethereum outflow of the year, with over 336,000 ETH, valued at more than $1 billion, being transferred out of the exchange. This significant transaction marks the fifth occurrence in 2024 where more than 150,000 ETH has been withdrawn from Coinbase in a single day. The identities behind these massive transfers remain unknown.
Major Ethereum Withdrawal Points to Institutional Activity
CryptoQuant’s latest analysis reveals that these transactions, ranging from $400 million to $1.1 billion, are likely driven by whales or unidentified institutions rather than individual investors. If these withdrawals are not internal maneuvers by Coinbase, they could indicate a bullish long-term outlook for Ethereum, the world’s largest altcoin.
CryptoQuant’s analyst also noted similar withdrawal patterns on Coinbase before the launch of spot Bitcoin ETFs. The $1.17 billion Ethereum outflow on June 12, 2024, may be linked to whales or institutions anticipating a rise in Ether prices in anticipation of spot Ethereum ETFs.
Anticipation Around Spot Ethereum ETFs
The recent approval of spot Ethereum ETFs by the US Securities and Exchange Commission (SEC) has sparked renewed interest in ETH-based investment products, attracting $200 million in inflows last week. This marked a reversal of a 10-week outflow streak.
While trader enthusiasm remains moderate, a K33 report suggests that spot Ethereum ETFs could attract around $4 billion in inflows within the first five months of their launch. Drawing parallels to the significant price rally seen with spot Bitcoin ETFs, the research firm posits that Ethereum could experience a similar boost, potentially outperforming Bitcoin.
Conclusion
The historic outflow of Ethereum from Coinbase, driven by what appears to be large-scale institutional activity, coupled with the excitement surrounding the launch of spot Ethereum ETFs, points to a potentially bullish future for Ethereum. These developments, reducing the circulating supply and increasing demand, are expected to positively impact Ethereum’s price in the medium to long term.