Ethereum Surges as Whale Utilizes Spark Platform’s Loans

Ethereum market price has surged, reaching a one-month high and showcasing growing demand for the asset. Amid this bullish development, the on-chain analytics platform Lookonchain revealed a noteworthy strategy by an Ethereum whale, signaling strong confidence in the asset’s future trajectory.

A whale is accumulating $ETH and going long $ETH by revolving loans on #Spark!

The whale has withdrawn 39.9K $ETH($99.5M) from #Binance, #Bybit, #OKEx and #Bitfinex since Feb 1 at an average price of $2,492, and borrowed 56.8M $DAI from #Spark.https://t.co/9EQSrwHnJD pic.twitter.com/6CydURt2pc

— Lookonchain (@lookonchain) February 13, 2024

A mysterious whale has steadily grown their ETH stash using the Spark platform’s loan system. Spark enables users to borrow stablecoins like USDC or DAI by collateralizing their crypto assets, functioning within the DeFi ecosystem.

Lookonchain’s analysis reveals that an investor withdrew a substantial 39,900 ETH, valued at approximately $99.5 million, from leading cryptocurrency exchanges like Binance, Bybit, OKEx, and Bitfinex. They have leveraged the flexibility of revolving loans to boost their position in Ethereum significantly.

Moreover, Lookonchain’s analysis suggests that the Whale’s significant withdrawals reflect a deliberate and ongoing strategy, not a one-time occurrence. Whale consistently withdrew ETH from exchanges this month, averaging $2,492 per ETH. Whale has borrowed approximately 56.8 million DAI from the Spark platform to fuel its expanding Ethereum holdings.

Furthermore, this strategy is undoubtedly bold; it highlights the optimism surrounding Ethereum’s potential for future growth, especially in anticipation of the upcoming altcoin bull run and the expanding interest in Ethereum-based investment products like spot exchange-traded funds (ETFs).

The SEC hasn’t provided any recent updates on the status of spot Ethereum ETF applications. However, reputed asset manager Franklin Templeton has recently jumped on the ETH ETF queue. This signals increasing institutional interest in Ethereum investment products.

Ethereum ETF Frenzy: Franklin Templeton Joins

A recent post by James Seyffart, an experienced analyst at Bloomberg Intelligence, highlighted that Franklin Templeton has joined the ranks as the eighth firm in the cryptocurrency sector to apply for product authorization for a spot Ethereum ETF.

Here’s the most recent table of other filers that I have pic.twitter.com/xCRRMwK76r

— James Seyffart (@JSeyff) February 12, 2024

This follows previous submissions by other prominent asset managers for Ethereum ETFs, namely Hashdex, BlackRock, Fidelity, Ark and 21Shares, Grayscale, VanEck, Invesco, and Galaxy. The growing list of institutional players seeking exposure to ETH through regulated investment vehicles underscores the asset’s rising mainstream appeal.

These developments come when ETH has sustained a positive momentum, closely tracking the performance of the leading cryptocurrency, Bitcoin. The asset surged over 10% weekly, nearly 1% more in 24 hours, keeping the uptrend.

Ethereum price today is $ 2,634.98 with a 24-hour trading volume of $ 13.45B and a market cap of $ 316.64B; the ETH price decreased by 0.83% in the last 24 hours.

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