Ethereum Foundation Dumps ETH Ahead of ETF Launch: Shady Strategy in Action?

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Spotonchain, a prominent blockchain analytical platform, the Ethereum Foundation recently sold 100 ETH for 345,179 DAI. This transaction is noteworthy because it took place just hours before the scheduled launch of Ethereum ETFs, adding intrigue to the timing and raising questions over the exact reason behind such a transaction.

Ethereum Foundation’s Recent Sales

Spotonchain reports that, in 2024, the Ethereum Foundation has sold a total of 2,366 ETH, amounting to 6.9 million DAI, at an average price of $2,916 per ETH. The last recorded sale occurred 21 days ago, on July 2. 

The #Ethereum Foundation sold 100 $ETH for 345,179 $DAI ~35 minutes ago!

Notably, the sale came when the Ethereum ETFs will be launched in less than 6 hours.

In 2024, the Ethereum Foundation has sold 2,366 $ETH for 6.9M $DAI at an avg price of $2,916. The last sale was on July… https://t.co/MH9SQ4zJ9J pic.twitter.com/0ungPupRQJ

— Spot On Chain (@spotonchain) July 23, 2024

These sales are seen as part of a strategic approach by the Foundation to manage its Ethereum holdings effectively. Meanwhile, The timing of these transactions is particularly intriguing, given the imminent launch of Ethereum ETFs. 

Major Fund Movements

Adding to the intrigue, Spotonchain reports that another wallet associated with the Ethereum Foundation and the ICO, identified as “0xdb3,” transferred 3,200 ETH (valued at $11.2 million) to the Kraken exchange just 19 hours ago.

This significant movement of funds raises questions about the Foundation’s financial strategies and market outlook. However, the exact reasons behind this activity remain unclear.

ETF Market Predictions

Chinese journalist Colin Wu predicts that spot Ethereum ETFs could attract up to $4 billion in capital inflows within the next year. Analysts also forecast a 24% increase in Ethereum’s price during this period.

The SEC has officially approved the S-1 applications of Ethereum spot ETFs. It is expected that the initial trading will start at 9:30 on July 23. Wintermute predicts that the spot Ethereum ETF will attract up to $4 billion in capital inflows in the next year, and the price of…

— Wu Blockchain (@WuBlockchain) July 23, 2024

As of now, Ethereum is trading at $3,506, having bounced back 0.53% after a recent 3.5% drop, showing strong recovery potential.

Also Check Out: Ethereum-Based Tokens Fight the Bearish Heat Here’s What’s Next for ETC, ENS & LDO Prices! 

The timing of these transactions is undeniably suspicious. Could there be more to this story than meets the eye?

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