A significant cryptocurrency whale, identified as 0x837, has recently converted over $18 million worth of PEPE into Ethereum. This move comes amid a decline in PEPE’s price and growing investor interest in Ethereum, particularly with the anticipated approval of a spot Ethereum ETF.
Whale Converts PEPE Holdings to Ethereum
Recent reports indicate that whale 0x837 has liquidated all its PEPE holdings in favor of Ethereum. This activity was first observed 5 hours ago when the whale withdrew 1,728 ETH, valued at approximately $5.86 million, from Binance.
Over the past two days, 0x837 has amassed a total of 4,374 ETH, worth around $14.91 million. These Ethereum holdings have been strategically staked into the Compound protocol, indicating a shift towards yield generation.
Detailed Transactions and Market Impact
As previously reported by Coingape, whale 0x837 deposited 300 billion PEPE, worth about $3.85 million, into Binance yesterday, incurring a loss of approximately $1.73 million. Additionally, the whale deposited 1.1 trillion PEPE, worth $14.42 million, and withdrew 1,210 ETH, valued at $4.1 million, from Binance. In a related transaction, 0x837 converted 1.4 trillion PEPE into 2,646 ETH, totaling $18.01 million.
The average price for these transactions was $3,416, reflecting a strategic accumulation of ETH. The whale’s significant activity coincides with an optimistic market sentiment towards Ethereum, driven by the potential approval of a spot Ethereum ETF by the Securities and Exchange Commission (SEC), despite recent requests for issuers to revise their submitted S-1 forms.
Anticipation of Ethereum ETF Approval
The potential approval of a spot Ethereum ETF is expected to drive substantial institutional interest in Ethereum. Historical trends from Bitcoin ETFs indicate strong demand for cryptocurrencies among institutional investors.
However, industry experts project that inflows into Ether spot ETFs might be significantly lower than those seen with US spot Bitcoin ETFs. It is estimated that Ether ETF inflows could be around 33% of Bitcoin ETF inflows, with a possible range from 20% to 50%. This projection aligns with the capitalization multiple between Ethereum and Bitcoin, suggesting robust interest in Ethereum, albeit not at the unprecedented levels observed with Bitcoin.
PEPE and Ethereum Price Trends
The whale’s recent transactions and the broader market sentiment reflect the shifting dynamics in the cryptocurrency market. As the anticipation for a spot Ethereum ETF builds, Ethereum’s appeal to institutional investors is expected to grow, potentially influencing its price trajectory.