Pre-Empting SEC\'s Spot Ethereum ETFs Decision, Whales Dump LDO, AAVE, and UNI Tokens at a Loss

The recent update on Spot Ethereum ETFs (Exchange Traded Fund) by Nate Geraci, the President of ETF Store, has gained massive attention from investors and institutions.

A recent update from ETF Store President Nate Geraci on Spot Ethereum ETFs (Exchange Traded Funds) has left investors and institutions on edge. According to Geraci's post on X, the United States Securities and Exchange Commission (SEC), which was expected to approve the launch of these products by 2 July, has now postponed the decision to mid-July.

This update from Geraci triggered a massive sell-off in several Ethereum-based tokens.

Whales Sell Millions of LDO, AAVE, and UNI Tokens at a Loss

On 3 July, on-chain analytics firm Lookonchain revealed that a single whale/institution sold millions of dollars' worth of Ethereum-based tokens, including Lido DAO (LDO), Aave (AAVE), UniSwap (UNI), and Frax Share (FXS). According to the data, they sold 3.13 million LDO for a total of $5.77 million, 49,771 AAVE for $4.54 million, 269,177 UNI for $2.41 million, and 250,969 FXS for $708K – all at a loss.

This massive token sell-off caused the price of these tokens to drop significantly. According to CoinMarketCap, for instance, LDO registered a 14% price decrease, AAVE depreciated by 9%, UNI declined by 5%, and FXS lost 12% of its value.

It is important to note that this whale initially spent over $73 million to buy Ethereum (ETH) and related tokens following the approval of the spot Ether ETF form 19b-4 in May 2024. Despite this massive dump, the whale still holds a 3.33 million LDO worth $5.83 million and 31,191 AAVE valued at $2.8 million.

Ethereum’s (ETH) Price After ETF Update

This massive dump is an indication that if the U.S SEC delays or postpones spot Ether ETFs again, we may see another massive sell-off in ETH and related tokens in the coming days. Notably, following the ETF update, Steve Kurz, Head of Asset Management giant Galaxy Digital, told Bloomberg that the U.S SEC could approve spot Ether ETF within the next couple of weeks.

On the price charts, ETH appeared to be approaching its crucial support level of $3,250 and trading below the 50 EMA (Exponential Moving Average). If ETH fails to maintain this level, we could see a massive downside move to the $2,870 level in the coming days.

Despite the bullishness around Spot Ether ETFs and other Ether-based tokens, ETH also recorded a price decrease of 5% in the last 24 hours.

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