Coinbase Witnesses Largest Ethereum Outflow of the Year, Surpassing $1 Billion

Coinbase saw its largest Ethereum outflow this year, totaling more than 336,000 ETH, worth more than $1 billion on June 12.

This marks the fifth instance in 2024 where more than 150,000 ETH has been withdrawn from a cryptocurrency exchange in a single day. It is still unknown who is behind this huge transfer of funds.

Coinbase's historic flow of $1 billion in Ethereum

According to another the findings According to CryptoQuant, the size of these transactions ranges from $400 million to $1.1 billion, suggesting that they are unlikely to be led by retail investors. Instead, these movements are likely coordinated by whales or anonymous institutions.

If these withdrawals are not internal adjustments within the exchange, they could indicate a very positive long-term outlook for the world's largest altcoin.

The CryptoQuant analyst also noted similar activities on Coinbase prior to the start of spot trading for Bitcoin ETFs. As such, the $1.17 billion withdrawal on June 12, 2024, could be influenced by whales or institutions anticipating an increase in Ether prices alongside the offering of Ethereum ETFs.

He added: “Whether this assumption is correct will become clear in the coming days.” However, such moves that reduce circulating supply (higher demand) are expected to have a positive impact on the price in the medium to long term.

All eyes on the Ethereum ETF

With the US Securities and Exchange Commission (SEC) approving the Ethereum spot ETF, ETH-based investment products saw a major rebound last week, attracting $200 million in inflows. This was the second week of inflows, which reversed a 10-week series of outflows.

The degree of excitement around these investment vehicles is moderate, as evidenced by recent trader positions. However, a K33 report shows that Ethereum ETFs could generate inflows of around $4 billion within the first five months of their launch.

The research firm also highlighted that since spot Bitcoin ETFs sparked a more than 60% rally in the price of Bitcoin, Ethereum may see a similar boost. Hence, K33 also added that Ethereum ETFs could help the altcoin outperform the world's largest digital assets.