By ZyCrypto - 3 months ago - Reading Time: 2 minutes
Mysterious Whale Injects $2.88 Billion into Crypto Market as Spot Bitcoin ETF Approval Looms
In a notable development, a mysterious entity has injected a whopping $2.88 billion into the cryptocurrency market over the past three months, raising eyebrows about its intentions even as the crypto community eagerly anticipates the approval of a spot Bitcoin exchange-traded fund (ETF).
According to crypto analytics firm Lookonchain, the whale’s latest move involved the transfer of 239 million USDT from the Tether Treasury to a wallet identified as “0x1dBb,” with subsequent deposits into various exchanges. This comes merely three days after which another entity received a substantial 735 million USDT from the Tether Treasury and swiftly deposited it into various exchanges.
These developments have ignited enthusiasm within the crypto community, prompting speculations about the identity of the major investor behind these strategic purchases. Some have predicted they could be big traditional investors looking to purchase Bitcoin and other cryptocurrencies post-the-spot ETF approval.
Notably, these transfers unfold concurrently with Tether, the influential stablecoin heavyweight, escalating USDT printing. Just today, Tether treasury minted a substantial 1 billion USDT four days after injecting 2 billion into the crypto market, contributing to a remarkable 38% increase in market cap since January.
While some analysts posit that the heightened Tether issuance aims to meet the growing demand for stablecoins preceding the ETF approval, the practice has prompted concerns regarding the potential ramifications on Bitcoin’s price dynamics.
Nevertheless, despite the scepticism, excitement regarding the approval of spot Bitcoin ETFs is on the rise. Steven McClurg, the co-founder of Valkyrie Investments, anticipates that spot Bitcoin ETFs will be approved by the end of business day on Wednesday before trading begins on Thursday. As per a Fortune report on Tuesday, the pundit forecasted an initial influx of up to $400 million into its ETF during the first week, with the overall market potentially seeing up to $5 billion flowing in over the first few weeks of trading.
The influx of institutions into the crypto sector is predicted to grow, and in an interview with prominent trader and crypto podcaster Scott Melker, Matt Hougan, Bitwise CIO, highlighted the anticipation of significant new money entering the market.
“I think there is real new money set to come into the market. There are advisors on the sidelines who haven’t been able to access this that control trillions of dollars who want 1-5% in Bitcoin. Our survey how that 88% of them are waiting for the ETF to launch before they consider buying…,” said Hougan.
Cathie Wood, CEO of Ark Invest, also expressed optimism, stating during a CNBC interview Monday that the SEC’s green light would encourage institutions to enter the market. According to her, conversations with institutional investors indicate growing interest, especially now that regulatory hurdles seem to be diminishing, paving the way for a new era in crypto investment.
Original source: ZyCrypto