The ETF Store President Nate Geraci recently drew widespread attention from investors and institutions with an update on spot Ethereum ETFs. According to his post on X, the U.S. Securities and Exchange Commission (SEC) might have approved the launch of these products by July 2, but has delayed the decision until mid-July. Following Geraci’s update, some Ethereum-based tokens experienced a significant sell-off.
Whale Sells LDO, AAVE, and UNI Tokens at a Loss
On July 3, on-chain analytics firm Lookonchain revealed that a whale/institution sold millions of dollars worth of Ethereum-based tokens, including Lido DAO (LDO), Aave (Aave), UniSwap (UNI), and Frax Share (FXS). Data showed they sold 3.13 million LDO worth $5.77 million, 49,771 AAVE worth $4.54 million, 269,177 UNI worth $2.41 million, and 250,969 FXS worth $708,000—all at a loss. Following this market sell-off, token prices dropped significantly. For instance, according to CoinMarketCap data, LDO’s price dropped by 14%, AAVE depreciated by 9%, UNI fell by 5%, and FXS depreciated by 12%.
It is worth noting here that after the May 2024 approval of the spot Ethereum ETF under the form 19b-4, this whale initially spent over $73 million to purchase Ethereum (ETH) and related tokens. Besides this large dump, the whale still holds 3.33 million LDO worth $5.83 million and 31,191 AAVE worth $2.8 million.
Ethereum (ETH) Price After ETF Update
This large-scale sell-off indicates that if the U.S. Securities and Exchange Commission delays or postpones the spot Ethereum ETF again, we might see another large-scale sell-off of Ethereum and related tokens in the coming days. In fact, after the ETF update, Galaxy Digital head Steve Kurz told Bloomberg that the U.S. Securities and Exchange Commission might approve the spot Ether ETF in the next few weeks.
On the price chart, ETH seems to be near the key support level of $3,250, below the 50 EMA (Exponential Moving Average). If ETH fails to maintain this level, we might see a significant drop to the $2,870 level in the coming days. Despite optimism around the spot Ethereum ETF and other Ether-based tokens, ETH’s price also dropped by 5% in the past 24 hours
