Binance sees huge surge in Ethereum purchases
Binance sees huge surge in Ethereum purchases
Binance, one of the world's largest cryptocurrency exchanges, has seen an unprecedented surge in Ethereum buyers.
Experts believe that traders are reacting to news about the possible imminent approval of a spot Ethereum ETF, which has led to aggressive market orders for the cryptocurrency.
Analytics platform CryptoQuant noted a record spike in net Ethereum transaction volume on the Binance platform. In a single trading session, the volume of purchases by buyers exceeded the volume of sales by sellers by an impressive $530 million. This figure reached the highest level ever, indicating a strong dominance of buyers.
The buying activity is attributed to optimism fueled by Bloomberg ETF specialists James Seyffarth and Eric Balchunas. Seyffarth estimated a 75% probability of approval for the spot Ether ETF, while Balchunas raised his probability estimate from 25% to 75% based on new estimates of political pressure on the US Securities and Exchange Commission (SEC).
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The pending approval of ETFs is a bullish signal for cryptocurrencies, as it signals broader market acceptance and easier access for institutional investors. Binance traders are also bullish on Ethereum's prospects, taking long positions in anticipation of a potential price spike following ETF approval.
Analysts say that the SEC's previous reluctance to seriously engage with ETF applicants may soften in the face of increased political scrutiny. This shift could usher in a new era of regulatory approval for cryptocurrency-based investment products, which in turn could lead to greater adoption of digital assets like Ethereum.
The crypto community has been watching developments closely, so the SEC's decision on the ETH ETF could be an important milestone.
Read also: Experts discuss SEC's changed stance on Ethereum spot ETFs
