Hong Kong recently approved applications for a spot Bitcoin and Ethereum ETF, leading to a slight improvement in Ethereum’s price. Whales have been taking advantage of the recent market dip to accumulate ETH, indicating their confidence in the digital asset.
The approval of spot Ethereum ETFs in Hong Kong by the Securities & Futures Commission (SFC) allows for in-kind redemption and subscription, unlike the cash redemption model used in the US for spot Bitcoin ETFs. While this news is positive for Ethereum, there are concerns that the US Securities & Exchange Commission (SEC) may not approve similar applications for a spot Ethereum ETF in May.
Whales have been actively buying Ethereum following the market dip, with notable transactions totaling millions in USDT and USDC to purchase ETH. This buying activity aligns with the approval of the spot ETH ETF in Hong Kong, suggesting that whales saw the market dip as an opportunity to accumulate more ETH.
Despite the recent price recovery, Ethereum may not see significant gains in the coming days. Whales are expected to maintain their buying activity, potentially keeping ETH within a price range of $3,210 to $3,406. However, factors such as the upcoming Bitcoin halving could impact the crypto market and lead to price fluctuations for Ethereum.
Currently trading at $3,134, Ethereum’s price is up 3.1% at the time of writing. The transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) mechanism in Ethereum’s network, known as “The Merge,” aims to enhance security, reduce energy consumption, and improve scalability with faster transaction speeds. Staking is also a popular strategy for investors to earn rewards by locking their assets instead of selling them.