- ETH whales have been more active over the past few months.
- Since the SEC approved the ETH Spot ETF, daily whale transfers have skyrocketed.
Ethereum [ETH] In a new report, Santiment said there has been a surge in whale activity in recent months.
According to the on-chain data provider, the recent increase in whale activity has been fuelled by rumors and the eventual approval of a spot Ethereum exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission.
On May 23, regulators approved Form 19b-4 for ETF applications filed by BlackRock, Fidelity, Grayscale, Bitwise, VanEck, Ark, Invesco Galaxy and Franklin Templeton.
This approval came unexpectedly after a long period of refusal to communicate with the publisher.
ETH Whales Take Control
According to a Santiment report, over the past 14 months, the cumulative holdings of whale wallets holding at least 10,000 ETH coins has increased by 27%.
This group of ETH holders purchased 21.39 million ETH (worth $83 billion) at current market prices during that period.
According to Santiment,
“Ethereum has outperformed Bitcoin (percentage-wise) over the past month after the SEC announced rumors and eventual approval of the first spot ETH ETF, so it’s not surprising to see whales not done buying.”
Regarding daily whale transactions involving ETH, the on-chain data provider noted that the number of ETH whale trades above $100,000 and $1 million surged to their highest levels since the start of the year following the spot ETF's approval last week.
That day, the number of ETH transactions over $100,000 reached 7,649, with 1,252 transactions over $1 million in total.
Source: Santiment
The surge was driven by increased profit-taking among large holders of the coin.
“Clearly, whales saw this as an opportunity to take profits. But as long as the 10,000+ ETH wallets continue to move north rather than south during this volatility, the price may continue to outperform Bitcoin.”
ETH holders book profits
Since its approval last week, daily transactions involving ETH have been profitable amid increased whale activity.
AMBCrypto assessed the daily ratio of gains and losses on altcoin trading volume (using a seven-day moving average) and found it to be 1.87.
Source: Santiment
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This means that for every ETH trade that ended in a loss last week, 1.87 trades made a profit.
At the time of writing, the altcoin was trading at $3,865. CoinMarketCap data.
