Ethereum Surges 8% as Alameda Transfers $14.75 Million in ETH to Coinbase

Ethereum’s recent 8% surge has ignited the crypto ecosystem, marking its largest increase in over a month. This jump is linked to speculation about potential US exchange-traded funds (ETFs) for Ethereum, fueling intense discussion among crypto community members.

On Monday, Ethereum outperformed major crypto assets such as Bitcoin.

Is Alameda Research Planning to Sell $14.75 Million in Ethereum?

As of writing, Ethereum’s price stands at $3,680. It boasts a 62% year-to-date gain, closely tailing Bitcoin’s 68% rise.

Recently, proponents of the spot Ethereum ETFs have reportedly engaged with the US Securities and Exchange Commission (SEC), signaling a shift in the regulatory atmosphere.

The SEC, traditionally cautious, showed openness by approving spot Bitcoin ETFs after a court reversal last January. Since then, these ETFs have attracted $59 billion in assets, demonstrating the market’s potential for regulated crypto investments.

Read more: Ethereum ETF Explained: What It Is and How It Works

Moreover, Ethereum’s performance has led to speculation about an impending rally. Heavyweights like BlackRock and Fidelity Investments have filed for Ethereum ETFs. However, the SEC’s final decision remains uncertain.

Despite this, ETF analyst Eric Balchunas voiced skepticism, citing the SEC’s reticence to provide feedback on ETF applications. This caution reflects broader market sentiment, with just a 16% chance for a spot Bitcoin ETF approval by the May deadline, as estimated by Polymarket.

“Definitely interesting, but no change our odds. As we’ve said, need SEC to give comments on the filing documents (the “critical feedback” he mentions) and that still ain’t happening, even in person they offering nothing. Silence is violence,” Balchunas said.

Chances of Ethereum ETF Approval by May
Chances of Ethereum ETF Approval by May. Source: Polymarket

Furthermore, significant Ethereum accumulations by crypto whales have been reported. Before the surge, over $35 million in ETH was acquired by crypto whales, pushing the price above $3,400 on Monday.

Taking advantage of the pump, Alameda Research, tied to the defunct FTX exchange, has been active in the Ethereum market. Reports from Spot On Chain indicate a notable 4,000 ETH ($14.75 million) deposit by Alameda to Coinbase, the largest since a major rally in February.

The transfer to centralized exchanges indicates that the crypto firm might have the intention to sell Ethereum. Alameda Research’s wallets still retain substantial Ethereum assets, with $64 million in Wrapped ETH (WETH) and ETH.

“Since February 1, 2024, FTX and Alameda had deposited 21,650 ETH to Coinbase at $3,343 on average ($72.4 million), mostly before the price dropped,” Spot On Chain elaborated.

Read more: Ethereum (ETH) Price Prediction 2024/2025/2030

The crypto firm’s action creates a complex situation for Ethereum. The upcoming period is critical, with potential regulatory approvals and market movements poised to shape Ethereum’s trajectory significantly.

The post Ethereum Surges 8% as Alameda Transfers $14.75 Million in ETH to Coinbase appeared first on BeInCrypto.

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