Ether ETF: Early Ethereum Investor Buys $24M ETH Ahead SEC Verdict

In a significant move ahead of the SEC’s impending decision on the Vaneck Spot Ether ETF, an Ethereum whale has made a major move. James Fickel, renowned for his early investments in Ethereum (ETH) and founder of the Amaranth Foundation, has made a significant ETH acquisition.

Is James Fickel Betting On Ether ETF?

On May 23, 2024, Fickel purchased 2,642 ETH worth approximately $24.4 million as the Ethereum price rallied over $3,800. He utilized $10.1 million USDC and other crypto reserves, including Wrapped Bitcoin (WBTC), according to Spot On Chain data. Whilst, Fickel executed this transaction at an average price of $3,820 per ETH.

Moreover, the latest purchase is part of a larger strategy by Fickel, who has accumulated 14,494 ETH over the past three days. Moreover, he financed his recent acquisitions, totaling $53.3 million, through a combination of 390 WBTC and 26.1 million USDC, with an average price of $3,675 per ETH.

Fickel’s aggressive buying spree underscores his bullish stance on Ethereum, particularly in light of the SEC’s decision on the Ether ETF. However, Fickel’s confidence in Ethereum is not new. Since December 30, 2023, he has been strategically positioning himself in the ETH/BTC trading pair.

Over this period, he borrowed and exchanged 2,741 WBTC for 50,688 ETH at an ETH/BTC ratio cost of 0.054, further demonstrating his belief in Ethereum’s potential over Bitcoin. Moreover, as the May 23 deadline for SEC’s Ether ETF decision is here, his accumulation mirrors the growing market optimism.

The SEC’s verdict on the Vaneck Ethereum ETF is highly anticipated. Hence, many investors like Fickel positioning themselves to capitalize on a potential approval. Moreover, the introduction of an Ether ETF could significantly boost Ethereum’s accessibility to institutional investors, potentially driving up its value.

Also Read: Ethereum ETF Approval Date: Is Thursday D-Day for SEC’s Decision?

Ethereum ETF Approval In Jeopardy

However, the approval process for an Ether ETF is facing substantial uncertainty as not everyone is optimistic on the SEC decision. Financial analyst Charles Gasparino recently pointed out significant risks, suggesting that regulatory challenges could cause delays or even halt the approval process.

Gasparino explained the Ethereum ETF approval procedure, indicating that it requires two approvals for issuance. These include one from the Trading and Markets (T&M) division for trading, and another from either Corporate Finance (Corp Fin) or Investment Management (Inv Mgmt) depending on the type of issuance.

Moreover, a regulatory insider highlighted that only the T&M approval has a fixed deadline. This means that even if T&M approval is granted, delays in issuance approval from Corp Fin or Inv Mgmt could still occur. Meanwhile, analysts Gautam Chhugani and Mahika Sapra from Bernstein estimate that the approval of a Spot Ethereum ETF could lead to a 75% increase in Ethereum’s price.

Hence, the ETH price could potentially reach $6,600. They referenced the SEC’s approval of similar Bitcoin funds in January, which resulted in a 75% rise in BTC price in the weeks following, and they anticipate a similar outcome for Ethereum. In case the prediction comes true, ETH investors like Fickel could nab massive profits from the anticipated Ether ETF launch.

Also Read: Breaking: SEC Files Updates For BlackRock, Fidelity, and Other Ethereum ETFs